It may not occur to you now, but you should consider finding a title insurance company and get title insurance before purchasing your dream house.

You are probably wondering why you need to get title insurance and think, “What could go wrong?”. There is a lot that could go wrong, and without title insurance, you and your lender could lose everything you have invested in that house.  One of the things that every person and every couple dreams of is to have their own house, to have a property that they can call their own. It is fulfilling to know that your hard work has finally bear fruits, but it is also satisfying that you have crossed out one of your goals on your list, not because it is impossible, but because it already came true.

You consider a lot of factors before you finally say, “This is it!”. You would check the house itself, is it the right size? Does it have enough bedrooms? Does it give you the “vibe” of your dream home? After that, you will check and research the community it is in, is the community peaceful, child friendly, and with minimal violence? After which you will check the transportations available, how far are the schools, the grocery, the hospital, even the train station? 

Of course, you will check if the price is right for the property and your budget, and if it is workable for you and your family. After all the considerations that you put in place, redecorating the house is another task and another expense. You shell out money faster than you have earned it, but hey, this is your dream, a life-long investment for you and your family, so yes, it is, and it should be worth it.

Choosing the perfect house for yourself or your growing family is one of the most memorable things that you will do. The memories that you shared in the house are priceless and irreplaceable. But, like all things in life, there will be surprises, it may be good or bad, you need to be ready to face it head-on.

You read that right, it is not just you but also your lender who will lose something if there is no title insurance for the house, this is also why a lender’s title insurance is a requirement before getting a mortgage. Lenders need to make sure that whatever happens to the property, the amount that they have lent have protection against any claims or defects. Lender’s title insurance would protect the lender if the seller failed to transfer the title of ownership legally.

However, the lender’s title insurance only protects the lender but does not cover nor give any assurances to the buyer. If the buyer wants to make sure that their interest in the property is protected, a different type of insurance is needed. An owner’s title insurance protects the buyer from any claims that may arise against the property. It will pay for the valid claims and the defense cost from legal proceedings arising from such claims.

Now that you know about title insurance, and you know that it is required to have lender’s title insurance before getting a mortgage, here is what you will lose without an owner’s title insurance:

  • MONEY – There are at the very least 32 ways that you can lose without title insurance to protect you. If any of these will come forward, the defense cost and the granted monetary amount, you can lose all your financial investment. Legal claims can siphon the last penny value of properties, especially if they have a good lawyer.
  • TIME – All the time that you have spent from searching mortgaged properties, to researching the neighborhood, checking out the nearby establishments, not to mention the time that you spent working on all those documents that you submitted to get the mortgage approved. The time that you spent renovating and redecorating, going back and forth to hardware stores, all of those, down to the very second, will be wasted. And time is not a luxury that you can replenish.
  • EFFORT – Every effort you and your family members have exerted will be wasted if you lose the property to a claim. It is also possible that you get to keep the house, but you might end up selling it after all the expenses that you might incur.
  • MEMORIES – It is priceless to grow old in the house that you have put so much effort into getting and building. It is great to share the memories that you have with your family and kids and of the house where you spent most of your time in. Those memories, the chance of having a “Family House,” can be lost if you do not have title insurance to protect you.
  • PEACE OF MIND – Without title insurance, it is hard to put your mind at peace knowing that your dream is vulnerable. A few talks and hearsay can already rattle you and make your head spin just by thinking if the gossips are real and what could happen if they were. Paranoia can stress you out, and you do not even know if it is worth the stress. Let’s not forget the possibility of someone showing up on your doorstep telling you that they have a claim on half of the whole property. That will keep you awake, trying to figure out what you should do next and how much you can spare for such an event.

You can lose a lot of things just by merely deciding to forgo the title insurance. Title insurance is a one-time decision that will protect you and your interest that will serve not only you but your next of kin as long as you heirs keep an interest in the property.

Escrow funds typically pay for the title insurance as part of the closing cost.  It may seem expensive, especially with all other closing costs that you will incur, but title insurance is that one cost that you should not let go. The benefits of having title insurance may outlive you, and all for a one-time payment.

Before entering any agreement, it is essential to first check for a reliable, experienced, and reputable title insurance company to help you with one of the most expensive purchases you will do. Your title insurance is only as good as the title insurance company providing it. Remember that this is your dream, and you do not entrust your goal to just anyone. You need to find the best title insurance company – Title Guarantee.

Title Guarantee has been serving the people since 2011 and awarded as the Top and Most Favorite Residential Title Insurance Agency in Utah for their unparalleled customer service.

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