The role of the title companies in real estate transactions should not be understated. They do foreclosure and default management, mortgage origination, issuance of title insurance, maintenance of escrow accounts and even closing sales. A good mortgage origination company is able to protect buyers from unexpected issues and unfair terms. The federal law says that every buyer of a company has a right to pick a title company.
What Title Companies Do?
Many of the title companies have a complete range of closing services. These range from settlements and title searches. These can have a team of real estate professionals, title officers and even attorneys. Servicing and default management will differ from one state to the other. There are states where premiums of title insurance are usually regulated. In other states, insurers are allowed to set the rates for lender title solutions. It is advisable that you ensure that you understand practices of title insurance in your state. This is important as there are companies that provide a higher support level and better insurance products as compared to others.
How to Select a title insurance company
After finding a property that interests you and even making an offer, your next step should be to search for the different title companies around where you live. Here are a few considerations that you will need to use:
Many homeowners will rely on the recommendations from lenders, real estate agents and many others. You will want to consider these recommendations but also make sure that you conduct your own research. This is important as there are advisors who will show open bias towards some title companies. There are also lenders who will provide good recommendations as they will be looking for protections that are similar to their own policy.
Representation of Attorneys
The title companies will in most cases use attorneys who will in most cases, put the interest of the company first. This is why it is important to consider finding a real estate attorney who will represent you during the entire closing process. The role of the attorney will be to review the terms of the insurance and even protect you at each step as you provide your outside title opinion.
Reputation of the Company
Go through online reviews to find references of what customers says and to find out about what real customers think about the insurance services and products offered by the title companies. Great title companies are usually set apart by qualities such as responsiveness, friendliness and timeliness.
You can find out from the prospective servicing and default management company whether they are willing to provide and even discuss title searches as well as good escrow management duties. You will need to figure out if your ownership experience will be affected by an easement and whether the company got some lax management standards. Where there is transparency in the service and default management, it is possible for the home buyers to get the services that are in accordance with the best practices of the industry.