The 7 Step Process of Title Insurance

Title insurance is a protection policy you need to get when you buy a house. It protects you from several title issues, and it might also be a mortgage requirement. It's a fairly simple process, which you can read all about in this post.

If You’re Interested in Purchasing Title Insurance in Grand Junction, Learn About the Process

Once you've found your ideal home and have gotten pre-approved for your mortgage loan, you're ready to present an offer on the house. If you're lucky, your offer will be accepted and a whole new journey in the home buying process will commence. Your mortgage lender will probably request that you get title insurance to protect their interests, but title insurance will cover you as well. Since you should always know what you are getting yourself into, take some time to read about how title insurance came to be and what the process entails. In this post you will find a simple seven-step guide to the title insurance process in Grand Junction.

7 Steps to Title Insurance

1. Apply for Title Insurance

The first thing you should do to begin this process is to call Advanced Title Company and request a title insurance policy. As a home buyer, you should do this almost as soon as your offer on the house has been accepted. Sometimes it can take a while to fix some issues, if there are any. The process needs to be completed before closing. Once you ask for title insurance, you will receive a report with the most basic information currently on the record about the property.

2. Record Search

A title insurance researcher will now begin the basis for the preliminary title report with all the papers related to the title of the property. These documents may include mortgages, liens, wills, endowments, and other information.

3. Title Examination

The title professional will analyze the title information to find any issues that need to be fixed prior to closing. There are many reasons why these problems arise such as unclear wills, missing heirs, human errors when transcribing, missing signatures, missing documents, liens placed on the property, and even property fraud. The researcher will enlist all the problems and how they can affect the property’s title. These are some of the reasons why title insurance is a necessary investment when buying a house. You don't want to end up with problems you did not sign up for. Call Advanced Title Company at (970) 255-7677 to get your process started.

4. Issuance of Binder

The title agency prepares a binder or a preliminary title report after they examine the title. A binder is designed to protect both the buyer and the seller during the transitional phase of the sale. This document indicates the amount of coverage the title insurance company will provide, the terms and conditions, and the limitations in the policy. It also outlines any ‘clouds’ that might affect the sale.

5. Uncovering ‘Clouds’

Clouds are all those unrevealed issues on a title. They may exist because of unpaid taxes, foreclosure attempts, encumbrances, inaccurate surveys and other occurrences under the present ownership.

6. Clearing the Clouds

Once the ‘clouds’ have been identified, they must be cleared before the sale is completed. Some issues can be easily resolved. For instance, a missing signature or document can be quickly taken care of. However, some clouds require legal action. In this case, clearing the cloud can become a lengthy and expensive process. If title insurance covers you, you are not liable for the cost of clearing the clouds. However, if you’ve chosen to forgo the insurance, you could be responsible for the costs of clearing them, and you can end up losing thousands of dollars.

7. Single Premium Payment

The great thing about title insurance is that unlike other types of insurance you don’t need to pay monthly premiums. A one-time payment is all you need to receive your lifelong protection. You will pay the premium along with other legal fees on the day of the closing. One of the copies of your title insurance documents will go to your lender and another to the property records. That’s it. You will have title insurance for the entire time you own the property.

 Begin Your Title Insurance Process in Grand Junction

There you go, that is the process of title insurance. Not so complicated, right? All you need to do is place a call to Advanced Title Company and they will handle the rest. That’s one thing to cross off your moving list, now all you have to do is worry about packing all your belongings. Call Advanced Title Company at (970) 255-7677 to request this essential protection.