Tennessee Title Company
If you have plans to buy a home, you should get in touch with a Tennessee title company like Closeline Settlements. These professionals will help you obtain the title insurance you need. Here are some common myths about title insurance that you shouldn’t believe.
- Title insurance isn’t necessary. Unfortunately, some people are under the false impression that they will never need title insurance and put themselves at a huge financial risk. For example, without title insurance, you may be required to pay debt that is not yours. Let’s say that the previous homeowner decided to remodel the bathroom and did not pay the contractor. The contractor then decided to put a lien. If you go to sell the home years later, the lien will likely be discovered and you will be responsible for the debt.
- If you have home insurance, you don’t need title insurance. Home insurance and title insurance are entirely different. Home insurance protects against losses from fires, burglaries and other disasters while title insurance protects your right ownership. As such, it is definitely necessary to purchase title insurance.
- Title insurance is very costly. Some homebuyers may shy away from purchasing title insurance because they assume it is too expensive. There are many costs that go into buying a home and they may want to eliminate as many as they can. However, title insurance costs just a small fraction of the closing costs and is completely worth it. If you don’t purchase title insurance, you could lose more money in the end.
- You can’t choose your title company. In most cases, homebuyers are allowed to select their own Tennessee title company. This is good news because it gives you more options. You can have meetings with several title companies and then choose the one that best fits your needs.
- You have to pay premiums. Many people assume that they have to pay monthly or annual premiums like they do with other types of insurance. However, title insurance is different. You only have to pay one fee at closing.
- If you pay for your house in cash, you can forgo title insurance. Just because you don’t have to take out a mortgage to buy a home, doesn’t mean you shouldn’t purchase title insurance. Paying cash doesn’t protect you from title defects.
If you have additional questions about title insurance, you should schedule a meeting with a Tennessee title company.