When buying a home, title insurance is a must-have to close on your home. But did you know that you will probably need both an owner’s and a lender’s title insurance policy? Before you sign on the dotted line, it’s important for you know the difference between your Minneapolis owner’s and lender’s title insurance policy.
Who it protects
As the lender approves your loan, they will also require a loan policy, which is another word for lender’s title insurance. This will protect your lender from any problems with your title or repayment. You will also need owner’s title insurance which will protect you from any issues that may arise regarding your title.
Why lender’s title insurance is important
If there is an issue with your title, your lender will want the amount of your mortgage protected. Most lenders will require a lender’s title policy to protect their interests in case of a title issue like an undisclosed heir coming forward or an error in previous title record.
Why owner’s title insurance is important
Owner’s title insurance protects your interests when buying a new home. If the previous owners failed to pay taxes, home remodeling contractors, or anything regarding the house, you could lose your home or be responsible for the cost of correcting these issues. With an owner’s title insurance policy, you can make your home investment with peace of mind knowing your interests are protected.
How to obtain title insurance
While your lender or real estate agent may recommend a title insurance company, we advise investigating title companies for yourself so that you can compare prices and services. Here at Twin City Title, we provide both lender and owner’s title insurance policies to help you and your lender work together as you close on your home.
If you’re ready to purchase a new home, then we’re ready to help with your title insurance needs.