If you are like most people, the mortgage process is kind of a blur. You have lenders, title agencies, closing costs, credit reports; the list goes on and on. With all the moving pieces, it may be hard to understand everyone’s role. Today, we’re going to focus on the importance of title agencies:
Title agencies are the “mom” of the group, making sure everyone involved (buyers, sellers and lenders) is taken care of and playing nice. When a property is bought or sold, the ownership must be transferred and valid for all parties involved. That’s where the title company steps in.
What Do Title Companies Really Do?
When a piece of property is being sold, the title agency validates the property. Title agencies protect the buyer and lender from possible claims, liens and other fees that may arise. So what do they do to ensure your protection?
- Hold and maintain escrow accounts: Sounds fancy, huh? This means when issues comes up in the process, like fees or claims and eventually, the final closing process, title agencies make sure money is used solely for facilitating these requests.
- Regulate closing process: This is when your title agent meets with all parties involved, issues closing payments and provides all necessary documentation to have a legal and safe closing.
- Wrap everything up: After closing, documents must be filed and put into place the correct way. Title agencies specialize in this.
They Are Your Friends
As title agencies begin transferring property ownership, they conduct a title search – an in depth examination of the property being bought or sold. This is where they make sure the property is exempt from any liens, unpaid taxes and other restrictions. If your title agent finds some shady evidence, your insurance can come into play.
Pick Your Own
There are thousands of real-estate agents and mortgage lenders out there and part of their business is making referrals to title agencies with which they have good relationships. As a buyer, you are entitled choose your own title agency. Make sure to do your research!
Title Insurance
Title insurance can be viewed as the title agency’s primary purpose: it protects both the lender and the buyer from claims or fees which may surface. Two types of insurance include owner’s insurance, which protects the property owner, and lender insurance, which protects the lending party involved.
The title agency and lender you use are equally important so be sure to get the right information needed to best fit your situation. If you have any questions about a title agency good for you, contact Mutual Title today!