Minnesota Title Company

Minnesota Title Company

Minnesota Title CompanyIf you plan to purchase a house soon, it is time to hire a Minnesota title company. A home is a big investment, and a title company will be there to protect your best interests. Here are a few good reasons to hire a title company.

Perform a Title Search

Before you decide to close on a home, it’s important to conduct a title search. This search can reveal title issues with the property, such as liens, easements, fraud, unknown heirs and errors in public records. These issues can lead to serious financial consequences. For example, if the previous homeowner had debt and a bank put a lien on the home, you may be responsible for paying for that debt.

A title company can conduct the title search on your behalf and give you peace of mind. If they discover any title issues, they will inform you immediately.

Offer Title Insurance

Even if you perform a title search, it is still in your best interest to purchase title insurance before closing on a home. Title searches are thorough, but they can still overlook issues. Having title insurance can help you avoid major financial losses down the road. Unlike other types of insurance, title insurance only requires one payment.

Assist With Closing

The closing is the last part of the homebuying process. The process can be quite overwhelming and involves many documents. That is another good reason to work with a Minnesota title company. They will make sure that you have the necessary documents signed and prepared. 

Possess Legal Expertise

A reputable Minnesota title company will also have legal expertise regarding the real estate market. If you have any questions or concerns about any legalities, your title company will be more than happy to answer them.

Questions to Ask a Title Company

Selecting a title company may seem tricky at first. There are many of them, so how do you choose the right one? Start by asking the right questions.

  • Do you conduct thorough title searches?
  • Are you a neutral third party?
  • How long does it typically take you to complete a title search?
  • What was your most difficult title search and how did you take care of it?
  • Does your firm belong to any professional organizations?
  • How much do you charge for your services?

Common Misconceptions About Title Insurance

It is highly recommended for homebuyers to purchase title insurance. However, this type of insurance is still widely misunderstood, so some may be reluctant to purchase it. Here are some common misconceptions about title insurance that you shouldn’t believe.

  • Title insurance costs too much. A home is one of the most expensive purchases a person can make. As such, many people try to cut costs in any way they can. They may even consider opting out of title insurance. However, title insurance is actually just a small fraction of your closing costs and completely worth the price.
  • Lender’s title insurance is all you need. If you obtain a home loan through a lender, they will require you to buy lender’s title insurance, which will protect them against future title issues. However, having lender’s insurance is not enough. To protect your own investment in the home, you will need to purchase a separate owner’s title insurance policy.
  • I have to use the title company my real estate agent suggests. Your real estate agent will likely give you suggestions on title insurance companies. However, that does not mean you can’t choose your own Minnesota title company. You should feel free to research different title companies on your own and select the one you feel most comfortable with.
  • If you perform a title search, you don’t need title insurance. Many people assume that title insurance is not necessary if they perform a title search before purchasing a home. However, even the most thorough title search can sometimes miss defects. If the defect is discovered years later, it can jeopardize your ownership of the property. As such, it is very necessary to buy title insurance.
  • Title insurance requires monthly premiums. Title insurance doesn’t work like other types of insurance. You don’t have to pay monthly premiums. In fact, title insurance just requires one payment at closing.
  • If you pay cash, it’s not necessary to buy title insurance. If you can pay for a home in cash, you will not have to obtain a mortgage loan, so you are not required to purchase lender’s title insurance. However, that does not mean you should not purchase owner’s title insurance. After all, paying for a house in cash does not eliminate the risk of title defects in the future.