How Much Do Title Company Services Cost?
When you get your initial approval, or preapproval, from a lender, you will also receive a Loan Estimate form that offers the lender’s best approximation of what your closing costs will be. You’ll see an estimate for title insurance, but this is an item you can shop around for, which could significantly lower this part of your closing costs.
According to the National Association of REALTORS®, title services generally cost up to $2,000, although it often depends on how many quotes you get. Some of the factors that affect the cost include:
Your geographic area
The loan amount
The price of the home
Finally, similar to other types of insurance, if you bundle the lender’s and owner’s title policies together, the title company is more likely to give you a better deal.
Do You Need Owner’s Title Insurance?
While the decision to purchase an owner’s title policy is ultimately up to you, there are many reasons you should strongly consider spending the extra money to protect your interests.
Overall Protection
Owner’s title insurance settles any debate if the home has had many prior owners. If a long line of people have possessed your property in the past, there’s more of a potential for someone to come out of the woodwork with a claim to your home.
Legal Fees
To dispute a potential claim to ownership, you’d have to pay exorbitant legal fees. Even if the person’s claim to ownership has no merit, the cost of attorneys to litigate that can be expensive. With an owner’s title insurance policy, it’s up to the title company to provide your defense.
Peace Of Mind
It is worthwhile if you value peace of mind over a few hundred dollars. By having an owner’s title policy, you’ll know your investment in your home is always protected. Additionally, even if someone has a legitimate claim, you’ll have the money to go get a new place of your own.
Real Estate Title Company
Your lender, lawyer or real estate agent may recommend a title company for you. If you’d like to shop around and potentially save on closing costs, you have the right to do so.
According to the Consumer Finance Protection Bureau, your lender is required to give you a list of companies in your area that provide the closing services you can shop for, which includes title insurance. You may also want to search online or ask trusted friends or family which providers they’ve used in the past.