What is title insurance? Why do you need it?
Title insurance is a policy that protects your mortgage lender from potential claims against your property.
The property serves as collateral for the mortgage, so a lender does not want to give someone money to purchase real estate, then have a third party dispute the borrower’s right to that property.
For this reason, lenders always require that you pay for a title insurance policy when you take out a mortgage. The process of issuing title insurance looks for any existing problems with the title through a process known as a title search.
Get the essential information you need in my Mortgage-Calc.com article, What is title insurance? Why do you need it?
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