Yes, An Owner's Title Policy is the Best Way to Protect Your Home!

Though your first reflex may be to brush off buying an owner's title policy as you navigate your new home purchase, you should reconsider. Yes, you have your money and time tied up in so many other things that come with buying a house, but title insurance can protect all of the money you've put into the investment. 

"I don't want to spend extra on title insurance. What's the Big Deal?"

The big deal is that you may not know how title insurance works in the first place and may severely miss out on its benefits. Your mortgage lender's title insurance does not cover you. Also, title insurance isn't a recurring monthly payment but a one-time payment paid at the closing of your home buy. From then on, you're fully protected. 

The highest risk for buying a home without title insurance is the possibility of claims that may appear due to any issues with the deed. These claims range from the discovery that an owner didn't report the complete picture of the financials on one end and the surfacing of a forged deed on the other. Unknown heirs who hold previous claims can materialize to challenge ownership, not to mention any liens that may not have been appropriately reported. 

 "So What Do I Do?"

Take Title Insurance into serious consideration. Peace of mind aside, you will have your legal fees covered in the unfortunate event of legal challenges, and if the claim succeeds, then it provides a net to hold back any loss on your investment. Homestead Title is known for its guidance unique to each client and facilitating the particulars of purchasing title insurance and every other step of closing on a property along the way. We understand that buying a home is an anxious, confusing journey, and we're here to offer our expertise. If you'd like to discuss title insurance for your upcoming home or property purchase, reach out to schedule an appointment or call (504) 581-6427 to discuss your options. 

A Title Company’s Role in Refinancing - A Quick Guide

Despite your original commitment to timely mortgage payments, unexpected difficulties can create hardships. When these problems take you by surprise, refinancing may be an option for you to try and lower your mortgage payments. Communicating with your lender will definitely assist you in your search for a lower interest rate.

Refinancing a home can be overwhelming to those new to the process. In accordance with our commitment to thorough and competent service, we'd like to offer the following quick guide to refinancing.

In loan refinancing, you are addressing the outstanding original loan by using a new loan to pay it off. Closing costs for refinancing can range from anywhere to 2-5%, with the average being 1.5%. Your interest rate, credit score, and type of loan are among the chief factors that determine your payment. 

During refinancing, you or your lender will choose a title company for research purposes. The title company’s responsibility is to determine that you are, in fact, the owner of the property. This evaluation is normally completed through a title search. The title company is also looking for factors such as outstanding judgments that the lender could ask to be paid before proceeding with refinancing.

Those who choose to go forward with refinancing may be curious about title status and have questions about title insurance.

* Title insurance isn’t paid through monthly premium, but instead by a one-time fee at closing. The lender seeks protection through title insurance at the time of closing. 

* Title insurance promotes investor confidence as mortgages are security-backed. Investor risk is minimized through title insurance.

The lender will provide you with a closing disclosure, which outlines how the loan will be disbursed and used. Ultimately, a title company acts as a go-between, or intermediate party, for all of those involved in refinancing, ensuring the process is free of headaches. 

 At Homestead Title, we handle the coordination of all parties of interest so that your refinancing runs efficiently. We also take the time to ensure that all documents are in order, so that you will experience a “smooth road” to refinancing. Call us today at (504) 581-6427 if you have any questions or would like further information on how we can help you.