If you’re buying a house, you’ll undoubtedly come across a line item for title insurance in your estimated closing costs. You may have heard that this type of insurance policy is a critical component of any real estate transaction because it protects your investment against potential third-party ownership claims. In fact, if you’re taking out a mortgage to finance your home purchase, your lender will require you to buy a lender’s title insurance policy to protect the mortgage company’s interests. It’s also a good idea to purchase an owner’s title policy and make sure it’s backed by a reliable title insurance company. That way, you can enjoy peace of mind that your investment is protected for as long as you and your heirs own your home.
How Can Having Title Insurance Help Buyers?
Title insurance policies protect a buyer’s and lender’s investment in a home (or other real estate) against defects in the title that may have gone undetected during a title search. Here are a few examples of issues that can lead to a third-party claim of ownership:
- Unpaid taxes, judgments or liens against the property
- A forged or fraudulently executed deed
- An heir of a previous owner that was unknown at the time of sale
Sometimes, title defects like these don’t surface for years. If you’re a homebuyer, your down payment and the home equity you’ve built up through mortgage payments year after year could be at risk if you haven’t invested in an owner’s title insurance policy. In addition to protecting your home equity, your owner’s title insurance policy coverage will also pay the legal costs of defending your ownership rights against third-party ownership claims.
How Can N Title Help?
At N Title, we provide title insurance policies that you can count on – but we do far more than that! We stand out among Texas title insurance companies because we treat you like family and want to share in your excitement as you close on a home.
If you’re planning a real estate transaction in Houston, San Antonio, Dallas or Austin, contact us today to learn more about our team and experience the N Title difference.