The simple answer to this question is that in Minneapolis, title insurance is paid at closing. However, you may still have questions about title insurance, especially if you’re buying a new home for the first time. Here are some simple tips to note when paying for title insurance.
Overview of title insurance
Owner’s title insurance protects the owner of the home from unknown documents or other calamities. Your policy can protect you and your family from any title claims in the future where you could potentially lose your home. The title insurance company will pay for the costs of court and get back the money spent to pay for the home.
How much title insurance costs
How much title insurance costs depends on the state and the home that was bought. Most states have a flat principal rate with the interest being determined by the title insurance company and the cost of the home. Check with our fee calculator to find out the price of title insurance for your home.
Why title insurance is paid at closing
Title insurance is paid at closing because the costs have been finalized at that time. The cost of the home, the loan amount, and the type of transaction all factor into the cost of title insurance. For example, the amount will change if it is paid with cash instead of a loan. Your title company needs to account for all of the money that you have invested into the home.
Title insurance has to be requested before closing so that it can be a part of the deal with the previous homeowner in the sale. If you’re looking at buying a home, be sure to ask your real estate agent about owner’s title insurance, or contact us at Twin City Title to learn more or get an estimate.