Mortgage lenders require you to pay for a title-insurance policy that will protect them from legal challenges to your ownership of the property. The title insurer also generally arranges for a title search and designates a closing agent to handle settlement.
Before you sign up for a title company affiliated with real estate agents or loan officers, check out the competition. You can cut the $2,000 to $3,000 cost by hundreds of dollars by shopping for a title service on your own. What you’re really looking for is the lowest cost for all the things that the title insurer provides.
Ask for quotes from
, a title insurer that sells directly to consumers in 39 states, and www.titleinsurance.com
, which represents six of the major title-insurance underwriters in 38 states. Also compare costs at a local title-insurance agency that’s not affiliated with a real estate brokerage or lender.
MORTGAGE: Title Insurance