If you’re buying a home, especially for the first time, you’re probably faced with a lot of terms and procedures that may be unfamiliar to you. Title insurance, escrow, points, amortization – if you’re like most people, it all sounds like a foreign language.
Good thing you came to KnowYourClosing.com. This site was designed to give you a quick overview of the whole real estate transaction process, so you can understand what’s involved and get an idea of what to expect. Read on, and you’ll feel a lot more confident as a home buyer.
How it Works
Before you understand title insurance, you need to understand what a title is. Basically, a title is a term that includes all of your legal rights to own, use and sell a piece of land. The title reflects all previous ownerships and transfers, including rights previously granted by other parties, such as mortgages and easements.
If there are problems with the title, the ownership of your land could be in question. Unpaid taxes, a lien (which is an unpaid claim) filed by someone who worked on the house, or any of countless other situations could cause a major problem. And even if you don’t get the land, you might still be responsible for the mortgage! That’s why it’s important to have title insurance. |
