What is a Title Company?
When you buy real estate, of course you don’t want to pay for property that the person selling to you doesn’t actually own. A title company helps ensure you do not.
A title company ensures the buyer that the property for sale is legitimate and truly belongs to the seller. The Title Company issues title insurance for that piece of real estate. This insurance protects both the mortgage lender and owner against claims and lawsuits regarding the ownership of the property.
What will a Title Company do for me?
A title company plays an integral part of the home buying process. If you’ve ever purchased a home, then you may have done the actual closing at a title company.
Before you buy a home, a title company will run a title search to determine whether there are any issues with the seller’s ownership of the property. Then the title company will issue an insurance policy that will pay out if someone else later produces a claim of ownership to that piece of property.
The title company may hold money in an escrow account which is a temporary account used to hold the money until it is transferred to the seller or used for closing costs.
How do I pick a Title Company?
Ask your mortgage lender and real estate agent for title company recommendations. They will have previous experience and a network to refer to.
You can also check out the Better Business Bureaus list of title companies near you. Most title companies charge a one-time fee at closing.
When buying a home, its okay to not know the answer to what you think may be common knowledge question, just don’t be afraid to ask.
Your GMFS Mortgage loan officer will help you every step of the way! Plus, there are helpful resources and tools on gmfsmortgage.com/resources.
Find a local GMFS Mortgage Loan Officer near you.