Title Insurance Helps During Border Disputes Caused by Survey Errors

Owning a new home comes with a lot of possibilities, excitement, and chances to create a forever home. Unfortunately, as you go through with changes and projects on your property, you may run into issues with other people claiming rights to your property. As you seek to remove trees, install pools, or make other landscape changes, learn how title insurance can offer protection and ensure you don't run into financial issues along the way. A title insurance policy can make a big difference on your overall property use and offer protections for years to come. 1. Utility Company Easements As the property went through changes over the years, previous property owners may have agreed to easements with various forms of utility companies. There could currently be power lines or some type of installation placed underground. The utility company easements could prevent the way you use your landscaping. For example, if you want to build a pool on your property, you could run into challenges or limitations based on the current placements of easements. Through title insurance, you can find out more about the easements on your property and some of the key locations. In some cases, an easement may allow companies to dig, install additional components, and make changes without your permission. Title insurance can help protect you against these changes and the costs of your property. In many cases, you can remove these easement agreements, especially if you didn't know about them. You may have the opportunity to have the companies relocate their buried items to another location and re-route the wires or cables to a different area. 2. Encumbrances & Deed Restrictions If your new home is part of a neighborhood that includes a housing association, then you may have restrictions in place you were completely unaware of. With title insurance, you can prevent the fines or charges applied if you find yourself going against some of these unknown restrictions. For example, an HOA may have restrictions on the style and height of a fence you want installed on the property. Without knowledge of these deed restrictions, you may come across pushback from a housing association. Workers involved with your title insurance can help you navigate deed restrictions, especially ones that may have expired or ones that you were not properly informed about. In some cases, you may come across fraudulent deed restriction documents that do not apply. Title insurance can help void these claims and allow you to make the proper changes on your property. 3. Property Line Disputes As you decide to expand outward on your property, you may run into disputes with the edge lines of your property. Some earlier deeds and titles may have different property lines than the one you agreed on. If you find yourself running into issues with the property lines, then the title insurance can cover any of those changes. As you sign up for title insurance, a big part will include title searches. As a part of the title searches, you may uncover different property lines and get a better idea of what your exact property lines look like. With the proper property lines, you will understand exactly where you can build out and not invade other people's property. You could even use the updated information to mark areas of the property so you know where your limits are. For more information on title insurance, contact us at Western Title Company . We can complete full title searches and give you the long history of a specific property as needed. With insurance and information, you can avoid major problems in the future.

Stories of individuals losing their homes due to fraud are scary, but you can take steps to safeguard your interests. One effective step is to get title insurance. Here's how a title insurance policy can protect you from fraud. Protect Against Wire Fraud Wire fraud occurs when thieves intercept communication between parties. They change information to divert funds into other accounts. By securing title insurance, property buyers and mortgage lenders are sure that the property's title is genuine. This leaves no room for ambiguity or unauthorized changes. This thorough examination guarantees the authenticity of the property's ownership. As a result, it diminishes the risk of wire fraud. If wire fraud does occur despite these precautions, title insurance can serve as a financial shield. It can provide coverage against losses incurred due to wire fraud-related issues. For example, the insurance can protect against forged deeds or unauthorized transfers. It offers compensation and aids in recovery efforts. Prevent Mortgage Refinancing Fraud Thieves can begin a process of mortgage refinancing on your behalf. They access the equity within your property and withdraw the resulting funds. Then, they disappear with the funds received in your account. You are left with the task of repaying the newly created mortgage. If you can't pay, you will face foreclosure. Consequently, you can potentially lose your home due to a mortgage you didn't take. If these fraudulent activities do occur, the title insurance policy provides coverage. It can pay for associated losses and legal expenses. Protection Against Hidden Defects Title insurance serves as a protective shield if another party asserts a claim against your property. This can be due to undisclosed ownership rights, fraudulent signatures, or concealed flaws in the property's title history. In the event that such a claim emerges, the title insurance policy covers the legal expenses and associated costs. This safeguards your rights of ownership. By securing title insurance, you create a barrier that protects you from the troubles of contested property ownership. In some situations, hidden defects or misrepresented ownership rights can come to light. The title insurance policy acts as a reliable safety net. It ensures that you are not troubled with the problem of paying legal fees and defense costs alone. This assurance allows you to confidently engage in property transactions. You know that you have a strong protective mechanism in place to address potential challenges to your ownership rights. Prevent Against Home Equity Fraud Thieves can seek to exploit your identity and falsely obtain a home equity line of credit in your name. First, they gather personal information about you. The information includes your full name, address, date of birth, and social security number. With this information, they then approach a financial institution offering home equity lines of credit, posing as you. The thieves would submit an application for the credit line. They will present the collected personal details as their own. They might also fabricate a believable story about their financial needs and reasons for requesting the credit line. During the application process, they provide documentation to prove your identity is their own. They possibly include forged identification documents or altered proof of address. If the information appears legitimate, the lender can approve the thieves' application. This grants thieves access to a line of credit based on the equity in your home. If thieves manage to falsely obtain a home equity line of credit in your name, title insurance can help. It can assist in covering the financial losses incurred due to this fraudulent activity. This can include legal fees, repayment of unauthorized credit, and other related expenses. Ervin J. Brandt founded us in 1963, maintaining local ownership for over 50 years. We're conveniently located, serving your title insurance needs for commercial and residential transactions. Contact Western Title Company to get started.

What do you need to know about escrow services during the residential real estate closing process? Say you're ready to buy your first home. Before you finalize the deal, you need to learn about what escrow is and why it's an important part of the closing. Take a look at what new soon-to-be homeowners should know about real estate, escrow, and the steps that are necessary to close on your property. What Is Escrow? Escrow is a term you may see during a real estate closing, on your mortgage statement, or in other places. In the world of real estate, escrow is an account. But it isn't the same as your bank checking or savings account. Unlike your checking account, you won't need to visit a bank and open an escrow account. Instead, this is an account that a third-party or mortgage company holds for you to keep money safe. Are All Escrow Accounts the Same? While escrow accounts, in general, are used to hold real estate-related money, you may have or need different types of accounts over the course of your home-buying transaction and during the home-owning process. As a new home buyer, you will put a deposit down to show good faith. This earnest money deposit demonstrates your ability to pay for the property and your desire to secure the investment. The specific amount of money you put down (the down payment) is a percentage of the home purchase price. This is the price the seller has agreed to accept for their property. According to the U.S. Consumer Financial Protection Bureau (CFPB), most of the common loan types, and many lenders, will require at least a five percent down payment. Even though a lender may require five percent (or at a bare minimum three percent), you can save money on the cost of your mortgage with a 10 or 20 percent down payment. Whether you choose a three, five, 10, 20, or other percent down payment, the money will go into an escrow account. This third-party account secures the funds and holds the money until the closing has gone through. The escrow account that holds your down payment isn't the only one you will have over the course of your mortgage. After the closing, you will have an escrow account to hold money for property taxes and homeowners' insurance premiums. Loans that do not have escrow accounts require the borrower (homeowner) to pay these expenses on their own. How Does the Home Buying Escrow Process Work? You will need to make an offer on your future home and the seller will need to accept it before escrow begins. Again, you will need to select a down payment amount. This percentage will depend on the purchase price of the home, your lender's requirements, and your real estate budget. When choosing a down payment amount, consider how much money you can reasonably afford upfront. You will also need to pay closing costs and may need extra funds for home improvements. The title-closing company or other third party will open the escrow account and safeguard your down payment money. This account will hold the money until your closing date. If you do not already have a lender's approval, you will need to wait for the bank to appraise the property before you secure a mortgage or begin financing for the amount beyond the down payment. You may also need to get a home inspection at this time and complete other pre-closing tasks. These could include securing homeowner's insurance, getting a title report, and purchasing title insurance. After the real estate closing, the money from the third party will release the money from the escrow account to the seller. Do you want to learn more about escrow and real estate closings? We can help. Contact Western Title Company for more information.

The process of buying a home is not as easy as many people expect. Apart from getting title insurance and paying the price of the home, you also have to consider other prepaid costs. While many mortgage providers will provide a detailed list of each prepaid cost, first-time home buyers might not fully know what to expect. Here is what you need to know about prepaid costs. Prepaid Property Taxes The seller should pay the tax on the property before the closing date. During and after the closing date, the buyer is responsible for paying the property taxes. Local and state property taxes vary throughout the country, including the tax's due dates. The escrow agent or lender can calculate the outstanding property taxes on behalf of the buyer or seller. As the buyer, you should reimburse the seller for any amount that they may have paid for the remainder of the annual property taxes. This calculation is based on the remaining percentage of the year. However, some states divide property taxes into two or three payments, with homeowners having to pay throughout the year. The lender will deposit the prepaid property taxes in an escrow account and only release it to the seller after the completion of the transaction. Prepaid Interest Prepaid interest is when you pay a mortgage lender or bank the money that you owe them in advance of when it’s due. The reason for this is that you will pay your mortgage in arrears. This means that the mortgage has to accrue for a month before you can pay the interest. For comparison, people usually pay their rent at the beginning of the month before they stay in the house. Mortgage monthly payments are due by the first day of the next month. However, not many closing deals happen exactly at the end of the month. Instead, you are likely to purchase a home on a random day of the month, such as the 16th or 23rd. Thus, the accrued interest for the first month will be for a random number of days instead of the usual 30. The bank might ask you to pay the first mortgage payment during the closing. That means that you will be paying for your mortgage interest in advance. You can also choose to postpone the closing date to the last day of the month. In this case, the bank won't ask you to pay the prepaid interest on your mortgage loan as part of the closing costs. Initial Escrow Deposit Payment An escrow account will hold the amount for buying the house and homeowners insurance until the completion of the transaction. Your lender might ask you to pay, during the home closing process, a specific amount that will open the escrow account. The amount can be different from what you typically pay to maintain your escrow account. The initial escrow deposit amount cushions the lender and ensures the money will always be there if the lender needs it. The purpose of an escrow account is to protect the lender and the borrower during home closing. For example, if the seller has outstanding property taxes, the lender can use the amount to pay those taxes on your behalf. The main benefit of an escrow account is that the amount you pay will go toward your mortgage payment. The amount in the escrow can also pay your insurance agent as you wait to complete the transaction. Get Title Insurance As you prepare to purchase your home, you also have to think about title insurance. This insurance protects homeowners and lenders against title defects. Western Title Company provides title insurance on a sliding scale according to the sales value of your property. Contact us now for more information.

Listing your home for sale is not difficult. But, the fact that sellers have no control over the better part of closing real estate deals can make the process stressful. You can easily self-sabotage if you do not figure out how to go through it smoothly. Learn how you can manage your anxiety during the closing process. Go In With a Positive Mindset How can anyone handle real estate transactions without a positive mindset? Every aspect is a pain point, from the appraisal process to buyers recounting because they have found better deals. So, you need to train your mind to accept uncertainties as part of the process. Cultivating a positive mindset all depends on your perspective. Once you understand that buyers catching cold feet is normal, you can conquer your anxiety. But you will also need to understand your triggers to maintain positivity. Some people stress during closings because they blame themselves whenever anything goes sideways. First, you must understand that the real estate environment is uncertain. Very little goes according to plan. Better yet, outline all possible scenarios before listing your homes just to be mentally prepared. Another way to stay positive is to understand everyone involved in the closing process is human. So, mistakes can happen at any point. Allow yourself to feel every emotion because you can only conquer the stress if you embrace it. Afterward, dust yourself up and continue with the process. Always Have Back-Up Offers in Place Sellers can get anxious during closing because they want to close the deal so badly, especially when they do not know what to do next if it falls through. Since anything can happen during the closing process, always ensure you have a better position than the other party. Backup offers will always give you an upper hand and confidence to close the deal under favorable terms. Your backup offer only becomes valid when the initial deal falls through. So, ensure that you negotiate the same way you did the first one and state it clearly in the closing agreement. Some buyers may find reasons during house inspections to renegotiate the price. In this case, you can take the second offer instead of going through stressful renegotiations. Backup offers are usually the same as the first or better with different or similar conditions. So even when the initial one falls through, you do not have to worry about making losses. Keep Your Mind on the End Goal The best things in life come with challenges. What you want at the end of the closing process should keep you focused enough to take on any stress triggers. Remember how much you stand to benefit if you close the deal successfully. Remember that even if the first deal falls through, the second offer can keep you in the game. Lengthy negotiations and complicated paperwork acceptance should not make you anxious because no matter how long it takes, you will still close the deal. Work With a Real Estate Company Delegation is what you need to get through the closing process stress-free. Real estate agents understand all the tricks necessary to make a closing successful. They also offer professional advice and have the legal expertise to negotiate a good offer on your behalf. If you cannot hire a real estate agent for the above reasons, then do so to take the paperwork burden off your shoulders. Filing the paperwork, sitting through lengthy negotiations, and handling buyers will not have to be on your to-do list. Western Title Company offers remote online closing services to clients. Contact us today for quality services.

If you are in the market for a real estate deal, you have probably heard about the need for a title search and may wonder what it is all about. This post will shed some light on this important aspect of real estate transactions and what it entails. Overview A title search is the investigation of a property to determine who owns it and to uncover any issues or encumbrances that may affect the ownership of the property. It examines public records and other data to ensure that the seller has the legal right to transfer property ownership. Title searches help protect the purchaser from financial loss. Title companies are the primary agents that use title searches for clients. They search through deeds, tax liens, land records, court judgments, and other sources to highlight any claims or liens on the property. A clean title is necessary to complete any real estate transaction. If a title search uncovers a lien on the property, the sale becomes impossible to complete. Title searches are an integral part of the property transfer, as they assure homeowners and buyers that they have made a safe and secure investment. While you can conduct a title search yourself, always involve a professional agent or firm to help you. Mechanism and Process The first step in the title search process is to probe the county records. Through the state government's website, individuals can access copies of public records relevant to the property of interest. Also review the tax records related to the property. Tax records provide a more detailed look at the property information, including the current fair market value of the property. You can also confirm that all property taxes are up to date. The next step is to check for a clear chain of title. The firm will obtain all the deeds for the property for the last 50 to 70 years and verify that the name on the most recent deed matches the seller. This step helps to ensure that no legal claims or privileges can reduce its value. Next, the company will examine the abstract of title. This document provides a condensed summary of the property history, including information about tax liens, foreclosures, inheritances, unpaid taxes, easements, or encroachments. Your agent must obtain the abstract before you commence negotiations for the purchase. The abstract of title can verify sequential ownership of a property and verify that there are no other legal claims against the property. The company will document its findings and consolidate pertinent information throughout the title search process. After the search is complete, consult a real estate attorney for advice on moving forward with the data. They can help with any legal paperwork and verify the search's accuracy. Benefits A title search can ensure that the property seller or current owner has the legal authority to sell the property to the potential homebuyer. It also reveals whether the property in question has existing liens, outstanding property taxes, or any other current claims on the property, which can help protect the potential buyer from inheriting financial debt. Additionally, a title search can uncover any easements or restrictions attached to a piece of property, which allows the prospective buyer to be aware of potential legal issues or disputes. Overall, a title search provides essential information that can help ensure that a real estate transaction is fair and legal for everyone involved. Insurance A title company can verify property ownership and provide more thorough records than a self-assembled report. Title companies work with real estate agents to verify ownership and access title records from previous owners. However, even the most careful company might miss some information and compromise your purchase. Always consider title insurance as the best protection in a real estate deal. Contact us at Western Title Company if you reside with Texas County for title assistance today.

When you buy a new house, you and your mortgage lender should confirm that the asset is actually yours and that it is free and clear of any liens, claims, or encumbrances. In the event that a claim is filed against your ownership and control of the property, title insurance safeguards both your interests and those of the lender. Although coverage depends entirely on the insurer, here is a broad overview of title insurance basics. So, what is title insurance precisely? It is an insurance plan provided by an insurance provider that protects or holds mortgage lenders and homebuyers harmless from damage or losses incurred as a consequence of insured title risks and flaws . Essentially, it transfers those risks from you, the property owner and mortgage lender, to the title insurance firms. Types of Title Insurance In today's real estate transactions, title insurance is essential since it safeguards both the property owner and the mortgage lender from any historical flaws or issues with the actual ownership of the property. Lender's title insurance is the kind of title insurance that is most frequently used. The other form is owner's title insurance. Lender's Title Insurance The lender is safeguarded by this policy in the event that a previous title or ownership issue surfaces following the real estate purchase. Most often, your mortgage lender will require that you purchase this sort of coverage prior to closing on the property. A lender's policy, moreover, only offers protection from loss for the lender. Owner's Title Insurance This title insurance plan, which is optional but highly advised, safeguards a buyer's ownership interest in properties in the event that a previous title or ownership issue surfaces following the acquisition. What Is Covered by Title Insurance? Title insurance frequently covers the following issues: • Encumbrances and liens on real estate • Issues with the title paperwork • Failure to abide by restrictions or limitations recorded on the title • Loss or harm brought on by fraud or forgery What Isn't Protected by Title Insurance? • Things like unreported liens that are not disclosed in public records. • Discrepancies that would only be found by a fresh assessment or inspection. • Environment-related risks • A slew of governmental privileges on the property. Title Searches and What They Entail A title search is a review of public records conducted by a title insurance company to establish and authenticate the legal ownership of a piece of real estate and to ascertain the existence of any claims against it. Extent of Insurance Coverage The cost of title insurance is often cheaper than the cost of a year-long automobile insurance premium. Unlike other forms of insurance, you only have to pay for the insurance policy once, at the time you purchase it. Coverage is in effect for the duration that you or your heirs possess the property. The coverage also immediately extends to your heirs for their benefit. Timeline for Title Insurance Title insurance is valid for lenders for the duration that the mortgage is still recorded on the property. When a lender covered by title insurance secures its security and experiences actual damage or losses related to a risk covered by the policy, the lender is protected. On the other hand, as long as the homebuyer retains ownership of the property, title insurance is valid for them. Some insurance plans also cover those who gained title after the buyer passed away, as well as certain relatives who could have gotten the property for free. When you're thrilled about purchasing a home or property, title insurance's specifics may not be the first thing that crosses your mind. But when buying a property, title insurance is a vital investment. Title insurance is intended to safeguard what is probably the biggest financial investment you will ever undertake. To get started, click here to secure your interest.

A home purchase is likely one of the biggest investments you will ever make. Because a home purchase is such a major investment, you need to fully understand every aspect of the buying process. One component of the sale is title insurance. Title insurance protects you after you buy the house. Part of title insurance is a title lock. You probably have heard of title insurance but may never have heard of a title lock. Discover some things you need to know. What Is a Title? Before getting into what a title lock is, you first need to understand what a title is. A title to a home is a document that outlines who owns the property. When you buy a home, you may assume the title is in your name only. However, this is not always so. The home you buy may have a complicated history. People may exist who are entitled to the ownership of the home that the buyer either was not aware of or did not disclose. Forgery could also be an issue that can prevent a clear title. The title of your home must be accurate to ensure your ownership is free from conflicts. What Is a Title Lock? A title lock is a tool that ensures the title remains clean. The title lock works similarly to a credit lock. You receive notification if ever a party makes a court claim that may impact the title of your home. The goal is to prevent any issues before they occur. Examples of issues that can occur include debt collection or an attempt at fraud. Do You Still Need Title Insurance? You still need title insurance even with a title lock. A title lock and insurance are not the same things. Your title insurance will protect you from any financial problems that could arise with your title. A title lock is a small part of your titling process that allows you to catch problems before they happen. Title insurance protects you from any problems, such as liens you did not know about. Your title lock professional will help you work through problems of which you are notified and resolve them as soon as possible. You must still carry title insurance to ensure you have protection. Make sure you have title insurance in your name as the owner. Do You Pay for a Title Lock? You will pay a flat fee for your title insurance when you pay. The fee is typically based on the value of your home. You only pay for this once, and it will be in place as long as you own the home. You also pay for a title lock. This is a subscription-type service that you pay each month. A title lock is fairly affordable, and you can cancel it when you want. Maintain a title lock for the peace of mind it brings. You might be able to decrease the monthly fee for your title lock. When you sign up for auto deposits or paperless billing, the company may give you a discount on your service. If you pay for your entire subscription at one time instead of paying monthly, you may receive a discount as well. Discuss your options with the title lock provider of your choice to learn about your options. If you have any questions about your title insurance or if you need to start a policy, please contact us today at Western Title Company . We will be happy to help you with all your title insurance needs, as well as go over anything you want to know about what we offer.

Sometimes, the excitement of owning a home can lead to costly mistakes, especially when you are a first-time homebuyer. Home buying is a complex process that involves a lot of paperwork and procedures, meaning you should be well prepared to protect your investment. In addition, you can ensure a successful purchase if you avoid common mistakes in the buying process, including during the closing stage. Let's see some mistakes that homebuyers make when closing on a home. Not Reading the Contract Word by Word Even if you are not used to reading huge documents, you should take your time when you receive the contract document and ensure that you understand every bit before signing. Remember that a home purchase is an important step in your life, and any mistake could lead to huge financial problems. Also, to avoid regrets in the future, ask questions if you have any and ensure that you have a copy of all the documents used in the purchase process. Not Disclosing Major Life Changes to the Parties Involved If anything that would change your finances happens before the closing date, notify all the parties: the lender, the seller, the seller's agent, and your agent. For example, if you lose your job or have a job change days before the closing date and after pre-approval for a mortgage, you should inform the lender to enable them to restructure your mortgage deal. You may think they won't find out, but lenders will check your employment status again on the closing date and may cancel the deal until they're sure you can repay the money. Using Different Versions of Your Name in Documents Mismatching names can lead to closing delays, as you have to redo the paperwork to match the names on your government ID or get a government ID with the names on the paperwork. Therefore, to avoid last-minute confusion, ensure that the names on each document are the full names on your government ID. Nicknames and stage names should not appear in any of the documents. Knowing Nothing About the Closing Process To ensure a smooth flow of events on closing day, you should be aware of the closing process, your role in the process, who to come with, and the documents required. You should also be aware of the location of the closing to avoid delays. If you are a first-time homebuyer, research the steps of the closing process or ask your agents all the questions you may have about the closing process. Making Big Purchases on Credit After Pre-approval Since a pre-approval does not guarantee that you will get a mortgage, you should refrain from making purchases that negatively affect your debt-to-income ratio. Even after pre-approval, the lender will vet your finances to ensure that you can repay your mortgage loan. If you use your credit card to purchase expensive items, like a car, your debt-to-income ratio may move from good to bad, prompting the lender to reject your mortgage application. Forgetting to Prepare for the Closing Costs Most homebuyers make the mistake of carrying a personal checkbook instead of a cashier's check on closing day or forget to set up a wire transfer. These mistakes lead to further delays since no closing agent will accept a personal check, as it does not guarantee that the funds are available. Some agents can also reject a cashier's check because the funds may take longer to appear in their escrow account. The complex home buying process ends with closing, making the closing process a crucial part of the homeownership journey. Despite being the last step, all your efforts can be wasted if you make any of the above mistakes. Therefore, you should avoid these mistakes to successfully complete your home closing process. At Western Title Company, we are committed to ensuring that our clients do not make mistakes that could cost them money. Contact us today for inquiries and more about our services.

Title insurance policies aim to protect the recipient from a defective title. You can get these insurance policies in two types: owner's and lender's title insurance. The two differ in that the owner's policy covers a landowner for the full purchase price and doesn't expire when you sell the insured property. On the other hand, the lender's policy protects the lender, loses value as they pay the mortgage, and expires upon the final payment. Read on to learn more about these two title insurance policies. Lender's Title Insurance Also known as a loan policy, the insurance protects mortgage companies' financial interests and covers them from title defects. The common defects include: Co-owners. A family member or relative may have inherited the property when it should have gone to a different person. The other party may have a legal claim on the property in question in such a situation. Tax liens. If the previous owner failed to pay property taxes to the state or local authorities, the amount owed should be paid before the sale or refinance of the property. Debt claims. Debts owed on a property can become the liability of the next owner, which can adversely affect the transaction process. Contractor claims. Some contractors who worked on the property before you purchased it may claim they were not compensated for their services. Mortgage lenders require you to have a lender's title insurance, so you need to buy it any time you take a mortgage to purchase or refinance a house. Owner's Title Insurance This insurance policy protects the homebuyers against claims that predate the property purchase. Unlike lender's title, owner's title insurance is optional. Nevertheless, you should have one to protect your financial investment in the property. The policy covers you against the risk of financial loss due to encumbrances such as: Encroachments. These are physical fixtures that intrude the legal boundaries of the property and may happen unknowingly. Property deed errors. Attorneys, lenders, banks, and government institutions may make mistakes in the records. The errors can disrupt the entire transaction. Survey errors. Surveys are prone to mistakes that may trigger bigger issues like an extended dispute with neighbors. Conflicting wills. Wills can create confusion when a property owner passes on after they have sent mixed messages. For instance, they may put a house in one party's name and list a different party as a beneficiary for the same house. Forgery. Forged deeds or power of attorney can invalidate your property rights. Nonetheless, your insurance company will ensure you secure your property if you have a title policy. Do You Need Both Policies? Lender's title insurance is mandatory, while the owner's policy is optional. Nevertheless, experts recommend the purchase of both policies because title problems may make it hard for you to resell your property when the need arises. In extreme cases, you may lose rights to the property in question. Failure to have title insurance exposes the transaction's parties to huge risks, especially if they encounter a defect. For example, if you are a homebuyer and you find unpaid taxes from the previous owner after you have closed the home, the financial burden will lie on you unless you have title insurance. Additionally, title insurance is a once-only cost, and you get cover for as long as you own the property. If you choose to purchase the lender's and owner's policies, the total cost will be lower if you get them from the same rather than different providers. Conclusion While the chances that title problems will arise after you close your home may seem minute, the consequences can overwhelm you. You can rest easy when you protect your property from such instances. If you have any further questions about title insurance, contact us at Western Title Company . We will gladly help you with all your title issues.

Once your offer has been accepted, the excitement kicks in, and the countdown to closing begins. But before you can get your keys, you’ll want to be cautious of any roadblocks or setbacks that could cause a delayed closing and postpone your move-in date. You’ll want to rethink purchasing that beautiful new couch and hold off on planning those backyard additions before the title has been cleared. From appraisal issues to home inspection roadblocks, there’s a lot that can go awry before finally closing on your property. So how can you avoid a delayed closing? Be aware of these 7 common issues that could set back your closing date. What does delayed closing mean? Unforeseen circumstances can arise throughout the homebuying process, and depending on how long it takes to resolve the issue(s), it could result in your home not closing on time. Sometimes when a homebuyer wants to close on the home as quickly as possible, it can lead to unrealistic contract dates. However, there are often unpredictable roadblocks that can arise during the closing process that will push back your closing and keep you from meeting your deadlines. For example, a termite inspection could show that there is damage that'll require major repairs or the appraisal value of the home comes in lower than the price you offered on the home. Although a delay in closing isn't always the case, it's best for both buyers and sellers to be aware of the common reasons for delayed closings. 1. Financing Issues Unless you’re submitting an all-cash offer, you’ll need to obtain financing to purchase your home. It’s recommended to get pre-approved before house hunting to give yourself a realistic idea of how much home you can afford ; however, a mortgage pre-approval doesn’t guarantee that your loan application will be approved. By far, one of the biggest nightmares is that the mortgage falls through on the closing day. To avoid any financing roadblocks or a delayed closing, ensure that there are no major changes with your financial situation from the time you’ve submitted your loan application to the day of closing, such as buying a new car. With that said, it’s recommended to work with a knowledgeable, local mortgage broker. “A seasoned mortgage broker will fully analyze your situation and application, anticipate any issues, and guide you through the process to a smooth closing,” says Trey Bolen at Lendid Home Loans . It’s also important that buyers come to closing prepared with all necessary closing documents and payment for closing costs. “Most title companies and attorneys don’t accept personal checks over $500, sometimes less. Make sure you know in advance how you will be getting a bank check or wire transfer, so you’re able to close on time. Some smaller banks or online banks will not do a wire transfer or mail out a cashier’s check without you being present, so be sure to contact your bank ahead of time and have a plan to avoid delays in closing,” says David Hinds, CEO of VA Choice Home Mortgage . How to remedy the situation - To avoid a closing delay or, even worse, the sale falling through, it’s essential to be upfront and honest with your loan officer. “Give your loan officer full disclosure from the start - tell us everything. There’s no judgment here as we’ve seen it all. Tell us about old overdue child support and tax liens that could pop up and end the process. Just because it’s not on your credit report doesn’t mean it’s not out there. These can take days to research and get cleared,” explains Dean Tucker of Benchmark Mortgage in Boise Idaho. Douglas Toland Jr of Performance Mortgage suggests that buyers avoid making any changes to their credit reports before the deal has gone through. He recommends not applying for new loans or credit cards and avoiding any increases in your credit card balances. Any changes in your debt-to-income ratio or credit score could cause issues with your loan application, which increases the chance of a delayed closing. Buyers shouldn’t make any big purchases before closing either, such as a new car, furniture, or appliances. Buyers should also be wary of accepting a new job offer, adds Adam Backes of Southern Trust Mortgage . “Don’t make any employment changes at any point during the transaction without first consulting your loan officer. Most borrowers don’t know that lenders do final employment verifications just a few days before a settlement. Any changes to employment status could force the lender to decline the loan even at this point.” 2. The home appraisal is lower than the sale price A home appraisal provides the fair market value of a property and is typically required by your mortgage lender. It’s used to determine how much you can borrow and assures the lender that they aren’t lending more than what the home is worth. So, if the appraisal comes in lower than the agreed-upon purchase price, this can cause delays with closing as your lender may deny the loan application or require you to pay the difference. How to remedy the situation Since your lender will only give you what the house is worth , it’s up to you and the seller to determine how to make up the difference. Fortunately, you have a few options and your real estate agent will advise you on the best plan to resolve the situation and avoid a delayed closing. You can ask the seller to lower the price. You can make up the difference by spending money out of pocket. You can negotiate with the seller to meet you in the middle. In this case, the seller would lower the price, and you’d pay the remaining balance in cash. You can challenge the appraisal and request an appraisal review. 3. Major damage is found during the home inspection The home inspection is an important step in the home buying process and helps the buyer understand the home’s condition. It also acts as a safeguard by uncovering any major issues or repairs that they might not be aware of. While buyers aren’t required to get an inspection, it’s usually in their best interest. In an ideal situation, the home inspection report would come back with little to no issues. However, this isn’t always the case. If your home inspector uncovers potential problems or damage that could affect your health or safety, such as structural damage, the buyer and seller will need to reach an agreement on how to address these issues. Depending on the extent of the damage and negotiation process, repairs could take longer than expected, which may push back your closing date. How to remedy the situation - Once you have your heart set on a home, it can be tempting to glaze over any issues to get the keys in your hand as quickly as possible. But once you become the owner, it’ll be your responsibility to deal with any repairs needed. To avoid a delayed closing, you can ask the seller to complete the repairs before purchasing the home (if they can be done quickly) or request some form of seller concession to offset the cost of repairs. The goal is to remain as open as possible when negotiating to prevent the deal from falling through. 4. Clouds on the title Before you can close the deal, you’ll need to make sure that the title is clear. A title company or real estate attorney will conduct a title search, which examines all public records to determine the property’s ownership history and identify any clouds on the title. Clouds on a title are any encumbrances or unresolved claims that indicate a potential issue regarding ownership, such as liens or delinquent taxes. “The key to any successful transaction is to ensure that a full title search (60-year search) is ordered early in the process so that any potential title problems can be recognized and cleared quickly,” says Pruitt Title . “It’s also prudent to order a survey that would show any easements or rights of way that might impact the buyers’ full use of all the property or limit their ability to build additions to their house, create amenities, etc. For example, a buyer finds out that stringent building restriction lines created decades ago limits their ability to add to their house because the proposed addition would violate the building setback lines.” Another example that could cause a delayed closing is unpaid property taxes. The owners will need to pay the balance and any other debts for there to be a clear title so the transaction can close. “Municipal lien letters matter,” says Sara Cleary of Tri-County Land Title & Escrow Company . “They can identify potential future liens or permit issues that may show up as a surprise after closing. For example, a prior tenant's unpaid water bill will not show up on a title search but can become a lien if left unpaid. Make sure the title company is ordering lien letters and ask to see them before closing. This will ensure that there are no open or expired permits and no outstanding water utility balances that need to be tended to before closing.” How to remedy the situation - If there are clouds on the title, there’s not much a buyer can do on their end besides waiting until the issues are resolved, and the title is cleared. Once this happens and the deal closes, they’ll be able to purchase title insurance , which is required by the lender. “While many people think that because a title search is performed, a title company will be able to give an “assurance of title” to the client - that’s not the case,” says Bryce Morrison of Republic Title Inc. “Even the most straightforward title searches don’t eliminate a potential threat to the consumer. So while title companies clean up any known problems in the land records before closing, the only way to truly protect yourself is to purchase an owner’s title insurance policy which will protect your interest in the property forever.” Sellers should be proactive to avoid a delayed closing. Once the seller has received the preliminary title report, they should address any issues as soon as possible. To avoid potential issues or delays, Western Title Company recommends informing your title or settlement agent of any IRS tax liens or bankruptcies that involve the seller or the property. “Some people want to keep these things to themselves, but a thorough title search will unearth them. A closing will always be delayed until these issues are resolved, and these issues can often take quite some time to resolve." 5. Delayed approvals from Homeowners Associations If you’re purchasing a home that’s a part of a Homeowners Association (HOA), there are additional hoops you may need to jump through and documents you’ll have to fill out to close on your new home successfully. “Not all HOAs are the same, and in some cases, they require approval of the home purchase,” says Dean Collura, CEO, and Co-founder of TitleTap . “An easy way to find out if the home is located in an HOA community is to review any seller or property disclosures available from your real estate agent or the listing agent. Start the application process with the HOA once the home is under contract and well before your closing is scheduled to get any needed approvals that would otherwise cause a delay.” Collura continues: “For the title to the home to be insured free and clear at closing by the title company or closing attorney, an Estoppel Letter (also known as an Estoppel Certificate) must be ordered from the HOA. They must respond with the amount of any outstanding balances within the number of days established by state statute. Turn around times can vary, so make sure the title company or closing attorney has the necessary contact information and orders the HOA Estoppel as early as possible to avoid any closing delays.” How to remedy the situation - The best way a buyer can avoid a delayed closing caused by approval delays is to submit HOA applications and additional documents or orders early on in the closing process. It’s crucial to keep a close eye on the status and periodically check in as the closing date approaches. 6. The buyer is unable to sell their house A common contingency is the home sale contingency, which means the buyer’s offer is contingent upon selling their current home. If a buyer currently owns a home, they’ll oftentimes need to sell their old house before closing on a new one. This contingency allows the buyer to back out of the deal if the sale falls through on the existing home or if it doesn’t sell by the specified closing date. How to remedy the situation - A seller can do their due diligence when considering a contract with a home sale contingency by researching the average days on the market in the area to estimate how fast their home will sell. They can also price their home competitively for a quick sale. However, if the sale of their property gets drawn out, this could cause a delayed closing or, worse, jeopardize the transaction altogether. If the buyer has trouble selling their home, the seller can include a kick-out clause contingency in the purchase contract so they can continue to market their home and seek a better offer. This also puts the seller in a better position to negotiate if a second offer arises. 7. Issues found during the final walk-through could lead to a delayed closing Once the seller has moved out of the home, the buyer will have the opportunity to go through the property one last time before taking over ownership. If you and your real estate agent encounter any problems during the final walk-through , such as agreed-upon repairs that weren’t completed or damage that occurred during the move-out process, this could also lead to a delayed closing. For example, if all household appliances are included in the sale, but you notice that the refrigerator is missing during the final walk-through, this issue would need to be addressed before closing. How to remedy the situation - Unfulfilled contingencies during the final walk-through have a good chance of pushing back the closing date. However, your real estate agent should be communicating with the seller’s agent throughout the process to ensure any contingencies are being taken care of. The seller can also offer additional concessions to avoid a delayed closing or having the deal fall through. Is it normal for closing to be delayed? If you're worried about a delay in closing, don't be, it isn't unusual. According to a 2021 survey , 26% of surveyed real estate agents reported closing delays within the last 3 months and only 5% reported terminated contracts. While it's not an ideal situation, issues can typically be worked out quickly with the cooperation of both the buyer and seller. Originally published on Redfin

One way you can acquire or upgrade to a better investment property without immediate tax implications is with a 1031 exchange. Title companies can help with handling this type of real estate transaction. 1031 exchanges can be complicated, and Texas has several rules to follow if you want a tax deferral qualification. A title company can help make sure you obtain your new property without title hassles. Discover more information about 1031 exchanges, potential title issues, and the ways a title company may be able to help. 1031 Property Exchange Overview A 1031 property exchange is an exchange of like-kind investment properties between two parties. This type of exchange allows each owner to defer capital gains and other property taxes to a future date. A qualified property is strictly for investment, not for your personal use. The new property must also be for investment use. Like-kind property exchanges mean that you must exchange one investment property for something similar. For example, you can exchange a rural ranch for an urban apartment complex. Or, you can exchange a rental house for raw land. You cannot exchange land for non-like properties like a vehicle or private home. 1031 property exchanges can happen in four different ways, as listed below. All have a unique time frame for completion. Simultaneous With this exchange type, you and the other property owner exchange properties at the same time. Many people complete this process within a day, sometimes with help from a third party. Delayed Delayed exchanges are more traditional. You sell your property first and use the money from that transaction to buy the new property. You usually have a short time to make the exchange if you want to get tax benefits. Reverse A reverse exchange is the opposite of delayed in that you purchase or obtain the other property first before you exchange your own. Often, this requires you already have cash available for the new property. Like delayed exchanges, you have a limited time to complete it to receive tax breaks. Construction With this exchange type, you make tax-deferred improvements to the new property before you exchange the old property. Again, you or the other property owner must complete the improvements within a short time frame. 1031 Exchange Potential Title Problems A clean title is even more important for a 1031 exchange because the IRS has specific rules before you can get a tax deferral. For example, the property exchange must involve the same taxpayer. If the other assumed owner has ownership complications, you could be on the hook for added taxes and expenses. A thorough title search can inform you of who owns the property and whether the property qualifies for an exchange. 1031 exchanges may also have other issues that could affect your bottom line. When you close on a property, you will be responsible for these issues. For example, you may have additional difficulties like: Property ownership disputes between joint taxpayers or corporate partners Liens on your property from lawsuits Unpaid property taxes Additional government fees Claims by heirs and other parties When you use a title company, you get services that make the property transaction easier. Title companies will search your title to look for some of the issues listed above. In addition, they will handle much of the closing paperwork and provide title insurance. A title company can also act as a qualified intermediary to handle the entire 1031 process. If you have an investment property and want a smooth transaction, contact us at Western Title Company for information. We handle 1031 property exchanges and can help you with title issues and filing the paperwork. Call us or fill out our contact form to get started.

Buying a home is one of the most significant investments most people ever make. With the directions of your realtor and the requirements of your lending agent, you might have conducted all the necessary inspections and steps. Unfortunately, your excitement can quickly deflate with the discovery of certain things during the title search. The seller will have to resolve anything found before you can purchase the home. Discover a few things that a title search may uncover. 1. Existing Liens Against the Property A property lien is a legal claim against the property's value a creditor obtained to secure their debt. A lien can give the lienholder the ability to possess or repossess the property if the debt goes unpaid. A perfect example of a lien would be a first or second mortgage against the property, but you may have others. Some of these include: Property tax liens : Local, state, or federal municipalities can levy these for the failure of the homeowner to pay their taxes. Once they are filed against the property, the homeowner has a short period to satisfy the lien before the property goes into foreclosure. Judgment liens : These liens happen from a court's judgment. These liens ensure the judgment or settlement is satisfied. This lien remains until the homeowner settles the lien. In Texas, an unsettled judgment lien will remain attached to the property for 10 years even if the original owner no longer owns it. Mechanic's liens : These liens are for someone who has performed work or supplied materials for work on the home and has not received payment for their services. Homeowners association (HOA) liens : Homes in a community requiring homeowner fees can have the homeowners association file a lien when these fees go unpaid. Texas also has constitutional liens that original contractors can also file who have a direct contractual association with the homeowner. These liens are very similar to mechanic's liens but do not have the same filing requirements. 2. Encroachments All too often, homeowners build fences or plant trees without ensuring exactly where the property lines are. If both homeowners have a working relationship, the neighbor whose property is encroached upon may allow the fence or tree to remain. Unfortunately, once the property goes on the market, this will need addressing. If the encroached item can remain, it may need addressing in writing and recording in an encroachment agreement during your closing. 3. Restrictive Covenants Many communities under homeowners' covenants have restrictive covenants that govern numerous things within their community. These place limitations on what you are and are not able to do with your property. Restrictive covenants are usually tightly enforced and often help to maintain property values by maintaining a certain sense of unity. Some common restrictive covenants include: What color house paint you can use What type of landscaping you can have What type of mailbox you put up Where your visitors park How early you can mow your grass Make sure you review any restrictive covenants closely. These are binding legal documents, and not everyone wants to be told what they can and can't do with their property. Sometimes, the fines and fees for violations of these covenants can be hefty. It is usually better to be disappointed before you invest your life savings into a property you may not be happy owning. Western Title Company can help unearth some of these potential hurdles by performing your title search. Give us a call today before you invest another dollar into the process. We look forward to helping you with all of your title search and insurance needs.

When buying a house, a lien on the property can cause you many problems. Besides delays in the closing process, liens also place you at risk of inheriting previous problems with the property. Any claim placed against the property, including unpaid taxes, represents some form of a lien. For example, if an outstanding debt exists on mortgage payments, a lien remains enforced until the payment is cleared. Unscrupulous owners may end up selling you a home with liens without your knowledge. Learn more on the different types of liens that title insurance can protect you from when buying a new home. Mortgage Liens A lending bank places a mortgage lien on property that an owner has used as collateral for a loan. The property acts as security for the bank, serving as a guarantee of repayment down the road. If the property owner defaults on payment for some reason, then the lending bank can legally repossess the home. They can place a foreclosure agreement on the property, put it up for sale, and recover their funds. Sometimes, a property may have several liens against it. Maybe the seller had already taken out another loan as a second mortgage on the house. Here, more than one lender will want to recover their investment when the original property owner defaults on payment. Unsuspecting buyers may fall victim to buying such a house. Legally, the lenders have full rights over the property, which can be a huge loss for the new buyer. Tax Liens Generally, a tax lien is placed on a property due to the property owner failing to settle state or federal tax debts. Different forms of tax debts exist - all for different reasons. For instance, property tax liens can happen due to unpaid property taxes by the owner. Similarly, the IRS may place a tax lien if the owner owes back taxes dating back to a specific period. Unpaid taxes may stem from income tax or business tax. However, tax liens under the previous owner's name may not always show up in a deed. You could purchase the property without any knowledge of an existing lien. Things can quickly get complicated, especially when assessing the legal procedures involved. Luckily, title insurance can protect you in case you're in such a mess and if you purchase a policy before you settle on a purchase. Divorce or Child Support Liens Child support or divorce liens are placed on a property if the previous owner owes a lot in court-ordered child and spousal support. The alimony recipient may have previously forced a lien on the house you just bought. If the property sale was not a mutual agreement between the owner and the estranged spouse, you could be at risk of losing your title. Mechanic's Liens Sometimes, a contractor may place a lien on the property if they weren't previously compensated for work they did on the house. Maybe they delivered construction materials but weren't paid, or the owner didn't honor the payment contract agreement. Also, a subcontractor may place a lien on a property if they were hired by a general contractor but didn't receive their dues. For instance, a plumber hired by the chief contractor to replace old, busted pipes could place a lien on the property if they weren't fully compensated for their labor. Unfortunately, a prospective buyer may not know about such a lien, especially if they weren't too thorough in their title search. Although mechanic's liens have an expiration date, any hiccups after your purchase can become a nightmare, especially if the previous owner refuses to settle the dispute. Before you decide to buy a house, first check in with your title insurance expert. Protection from the above liens gives you the peace of mind and confidence that you'd need after purchasing a new home. If you need further clarification on the right type of title insurance, contact Western Title Company today.

If you're a new home buyer, your newly acquired property will have some history, some of which can be a huge inconvenience to you. Fortunately, when closing a real estate deal, a title search can reveal a lot about a property. Property searches let you know what to expect as the new owner and the possible risks involved with the purchase. Title insurance can shield you from such risks, including fraud and land boundary disputes. Because of the uniqueness of title insurance, misconceptions are pretty common. Most people end up confused and may not understand how important getting title coverage is. Discover some common myths about title insurance and the truth about them. New Homes Don't Require Title Insurance Your home could be brand new, but the land on which the house is built isn't. Chances are, the land had several previous owners before construction began. Buying property on such land opens you up to certain risks tied to ownership issues from previous owners. Disputed wills, easements, and property liens are just a few of the issues common to land ownership. You could get caught in between the mess and end up losing your resources or, worse still, your new property as well. Title insurance is crucial even for a new home and should be among your list of priorities during the closing process. Property Buyers Can't Choose a Title Insurance Company Although most realtors might have already hired their own title insurance provider, you're still within your rights to choose your preferred title insurance company. As a consumer, you're likely interested in reliability, and you can only be confident with a company you've worked with before or one you already trust. Since buying a home is a significant investment, you're better off working on your own terms. If any title changes are made, you'll need a reliable cushion to protect you from the resulting risks. Additionally, you could use the opportunity to negotiate with your preferred insurance provider on a friendly payment plan if you're unable to pay the premiums upfront. Title Insurance Is the Same as Homeowners Insurance A common belief among many homeowners is that they don't need title insurance once they've purchased homeowners insurance. However, the two coverages protect against different risks. Homeowner's insurance protects you from unexpected home damage due to accidents, natural disasters, theft, and vandalism. Title insurance, on the other hand, is more of a risk prevention strategy. Here, you're covered in case of legal disputes relating to a problem with the title on your acquired property. Without title insurance, you would be forced to remedy such issues yourself, using your own money. Title Insurance Is Only for the Homeowner Title insurance cuts both ways - by protecting a property buyer's interests and those of the lender. Title insurance covers will therefore fall under two different categories. Owner's Policy The owner's policy shields you as the property buyer in case of any problems with the right of ownership. With standard coverage, you're protected from any losses you could incur from settling title defects that were there before you purchased a title insurance policy. Enhanced title insurance coverage offers you the standard package benefits and still covers you if any issues come up after buying insurance. Lender's Policy The lender's policy covers the lender for the period until you make your last mortgage payment. The coverage shields the lender from any liabilities that could affect them in case of a title defect. The lender's policy has no protection for you as the new homeowner. Protect Your New Home A title insurance policy is of great value if you're keen on protecting your new investment. Sometimes, a seller might issue you with a warranty deed to guarantee that the title won't have any defects. But still, you can't completely rule out title issues, especially those related to undisclosed property information. Reach out to Western Title Company for more information about title insurance.

Whether you are buying, selling, or refinancing a home, a real estate closing can be a stressful event because, unless you are a real estate investor, the average person does not attend a closing on a regular basis. Knowing who will be there and why may help you feel more comfortable about the process. People Who Will Most Likely Be at the Closing While most closings take place at the title company's office, yours may take place at the listing agent's office. Standard procedure dictates that the seller and their real estate agent to choose the location most convenient for them. Due to the pandemic and social distancing rules, however, many title companies have added more closing options, including e-closings and even curbside closings. The people involved, however, stay the same, including: Buyers . Standard procedure dictates that the buyers to attend the closing. They have to sign both the closing paperwork and their mortgage loan paperwork. They can designate someone to sign on their behalf, however. Buyer's agent . The buyer's agent's job is to attend and see the closing to successful completion. They are there to make sure that everyone follows the details of the sales contract and to represent their client's best interests. Sellers . The sellers may or may not attend the closing. Some sellers decide to pre-close, meaning they sign all the paperwork ahead of time and only their real estate agent needs to be at the closing to represent them. They typically do this via an overnight mail service. Listing agent . Like the buyer's agent, the listing agent typically attends the closing to ensure that everything goes smoothly for their clients. They also collect a commission check from the proceeds of the sale. Escrow officer . The escrow officer is an employee of the title company. They help facilitate the closing by explaining each document to those present and by making sure everyone signs, initials, and dates in the right locations. The closing typically occurs around a large conference table to allow room for everyone above. An experienced escrow officer will lead all parties through the closing process in a timely and efficient manner, explaining each step as they go. People Who Are Less Likely to Be at the Closing Some people who may be involved behind the scenes of your real estate transaction but who do not necessarily attend the closing in person. Here are a few examples: Transaction coordinator . A transaction coordinator can become the key point of contact after the buyers and sellers agree upon a price. They coordinate the inspection, appraisal, and closing with all parties and, occasionally, attend the closing in lieu of the listing agent. Mortgage broker . Typically, the mortgage broker does not attend the closing. This is not a hard and fast rule, however. A mortgage broker may want to attend in person if the deal was particularly difficult to negotiate or if they simply want to meet everyone face-to-face. Legal assistant . While most real estate transactions do not require the expertise of a legal assistant, some might. This is particularly common when the property is held in a trust or if the probate court is handling the sale. They would not normally attend the closing, but they could. Escrow assistant . An escrow assistant is an employee of the title company. Their job is to research the history of the property and make sure that the legal owners are the sellers, that no one has any liens on the property, and that the taxes are current. Many people are involved in a real estate transaction, but most do not need to attend the closing. If you have any questions regarding the sale, purchase, or refinancing of your home, please call Western Title Company or your real estate agent. We'd be happy to help .

Owning a home is expensive, but it's also an investment. For this reason, you may want to occasionally refinance to improve your financial situation or investment. Refinancing is like taking out a new home loan on your existing home, and it can be beneficial for many reasons. If you aren't sure if refinancing your home is the right choice, check out these four situations where it may be a good option. 1. To Reduce the Interest Rate Every loan comes with an interest rate because it's how the lender makes money. Naturally, you want the lowest interest rate possible, but lots of factors affect interest rates. In some cases, the market affects the interest rate, causing it to skyrocket or fall. If you applied for your home loan during a time of high interest rates, it may be a good idea to refinance when the rates fall. Similarly, your personal situation may affect your interest rate. For example, if you had a low credit score when you first took out your mortgage, the rate may be high. Refinancing after your credit score has increased will result in a lower interest rate. 2. To Switch to a Fixed-Rate Loan There are two kinds of interest rates: fixed and adjustable. Adjustable-rate mortgages are initially lower than fixed rates. In fact, they may be set below the market rate. However, adjustable rates change as the market changes. If the market is doing well, your rate drops, but if the market does poorly, your interest rate increase. A fixed-rate loan has a set interest that never changes. This means your interest rate will never drop (without refinancing again), but it also means the lender can't increase your rate just because your credit dropped, or you switched to a job with less pay. 3. To Adjust the Repayment Period When you first buy your home, it may seem tempting to take out a 30-year mortgage instead of a 15-year mortgage because the monthly mortgage is so much cheaper. However, the longer you repay the loan, the more you pay in interest. Therefore, you'll pay more money for the same house if you choose a 30-year mortgage. When you are in a better financial situation, it may be a good idea to refinance to a 15-year mortgage. This will cost you more each month, but you'll save money in the long run. On the other hand, for some people, the monthly mortgage is simply too high to comfortably pay. In this case, refinancing to a 30-year mortgage may help by reducing the monthly mortgage. 4. To Take Equity From the Home Property is an investment, and you can borrow from that investment. If you have equity in your home, you can borrow some of it when you refinance. There are multiple ways to borrow from the home's equity. Some people take out a home equity loan (like a second mortgage), others prefer a home equity line of credit, and some homeowners opt for cash. The biggest benefit of taking equity out of the home is that you can put it right back in with home upgrades and improvements. In some cases, the upgrades may significantly boost the value of your home. Of course, you can also use equity to eliminate other debt, help pay for schooling, provide money during financial difficulties, and much more. If your initial home loan came with a terrible interest rate or a long repayment plan, or if you simply want to borrow equity to improve the home, refinancing may be the right choice. If you would like to learn more about refinancing, or if you want to start the process, contact us at Western Title Company today.

Closing on a new home is an exciting time as you complete your journey toward homeownership. Surrounded by documents and paperwork, you may feel closing is confusing. However, you can better understand the closing process when you familiarize yourself with some key terms commonly used during a closing procedure. Read on to learn more about these four essential terms you will probably hear on closing day. 1. Escrow An escrow is an account that retains all money and documents associated with a home purchase until closing day. Escrow holds deposit money, down payments, property deeds, and clear title checks. This account keeps money safe until it is time to disperse funds to the appropriate parties. An escrow is important because it takes the risk away from everyone involved such as the buyer, the seller, and the lender. For example, you would not want to pay a substantial deposit check directly to the seller. An unscrupulous seller may decide to keep the money if the transaction does not occur. Instead, your down payment is kept in escrow. There, a neutral third party like a title company waits until all conditions of the transaction are met before dispersing funds. 2. Title Search Before you sign closing papers, a title company must first conduct a title search of the property you plan to buy. A property title defines who owns a home. Sometimes a property title fails to reflect updated information about liens that may exist on a property. A title search is necessary to ensure a property title is clean and clear. A thorough title search sifts through many different document sources to look for problems. Your title company will check state and federal tax liens, deeds, county land records, bankruptcy records, and even divorce or child support cases. Finally, a title search can locate any easements and accurately establish property boundaries. Any problems found during a title search provide an idea of who may have a claim to a property before closing happens. 3. Title Insurance Sometimes the most diligent title search can miss a critical error that may delay a closing. Buyers and sellers can work together to deal with a prior debt or lien associated with the home. Or, a buyer may simply take on a lien and pay it off to clear the title. Unfortunately, you may not want to be responsible for a debt you did not incur in order to purchase the home. Because a clear title is so important to show ownership without any financial encumbrances, title insurance is necessary at the closing table. This type of insurance protects you, the buyer, if a title search misses a lien or debt. Title insurance helps cover costs associated with problems on a property title like back taxes, mortgages, gambling debts, missing heirs that claim ownership, or contractor liens. Your title company issues a title insurance policy for closing. You pay a single premium payment which is usually added to any other closing expenses when you sign paperwork. The policy protects you for as long as you and your heirs own the property. 4. Settlement A settlement is the same as a closing. This important event is the process of completing a real estate transaction such as your home purchase. During this time, all parties sign appropriate deeds, mortgages, insurance policies, and other legal papers. Documents are recorded and money is dispersed from escrow. Don't confuse settlement with a settlement statement, which is a document that outlines details, terms, and conditions of the loan on your new home. Because a title company facilitates all aspects of a closing, including the loan details, you will hear about a settlement statement at your settlement, or closing. If you are confused about any aspect of the closing process, don't hold back any questions. A good title company will answer any questions and educate you about your closing. Contact Western Title Company when you're ready to close on your new home.

2020 has been a difficult year, to say the least, and expensive monthly mortgage repayments certainly don't make life any easier. However, the ongoing economic contraction caused by the pandemic has resulted in a significant drop in loan interest rates, and some seniors are significantly lowering their monthly payments by refinancing their homes. However, if you decide to refinance your home to take advantage of cut-price interest rates, you must be aware of your responsibilities when it comes to purchasing title insurance. Purchasing a title insurance policy is usually mandatory when you take out a new mortgage, but the situation gets a little more complex if you refinance your home. Why Is Title Insurance Required For Mortgages? Title insurance is a unique type of insurance that protects both you and your mortgage lender when you take out a mortgage on a new home. This combined insurance policy protects both parties against claims on the property made by a third party and consists of an owner's policy and a lender's policy. For example, you may discover that the previous owner left behind significant debts, and your new house was signed over to the creditor as collateral. This can seriously jeopardize your legal claim to the new home. Other serious problems can arise if the boundaries of your new property are disputed by your neighbors or if the property's original title contains mistakes or defects. With title insurance, you will be financially protected against any of these unexpected claims. A good title insurance policy will pay your legal costs if the case goes to court, and will compensate you for any financial losses that result from a third-party claim. If your lender suffers any financial losses as a result of a claim, they will be reimbursed by their policy. Title insurance is not required by Texas state law. However, if you don't have title insurance, your mortgage lender will be left abandoned if you stop making your repayments for any reason. As a result, trustworthy lenders will only offer mortgages to buyers who take out a comprehensive title insurance policy that protects both parties. Do You Need New Title Insurance When You Refinance? Here's where things get complicated. When you refinance your home, you are essentially taking out a new mortgage against it; some of the new mortgage loan goes towards paying off the old mortgage, while the rest goes to you. Since you are not moving out of your home, and you are not buying or selling the title to your home, your original title insurance policy remains valid. However, because your original mortgage is now fully paid off, your refinance payment is an entirely new loan, which is not protected by the terms of the original title insurance agreement. If any problems with your home's title arise after the agreement for the original mortgage was signed, your new lender would have no legal recourse under the terms of their original title insurance policy. This means that while the owner's title insurance remains valid, you must purchase a new lender's title insurance policy on behalf of the lender refinancing your home. How Do You Obtain New Title Insurance When Refinancing? When you refinance your home, your refinancing lender will draw up a new lender's title insurance policy, which you must purchase. This can be an unexpected financial blow. Refinancing with your original mortgage lender is usually the best way to save money. If you made repayments on your original mortgage in full and on time, your original lender may be willing to offer steep discounts on title insurance and other costs in exchange for your continued business. You should also consult with a law firm that specializes in title law before signing any new title insurance agreement. Professionals will meticulously analyze the new insurance policy for any problems and will also thoroughly investigate your home's history for any pre-existing title problems that may have been missed. If you need any more advice about how title insurance can affect refinancing, contact Western Title Company today.

Title insurance shields homebuyers and mortgage institutions from any ownership problems linked to a particular property. The property you want to buy might have a significant problem, such as misfiled documents, which could affect your ownership. Therefore, you should buy title insurance to secure your investment and give you peace of mind. This insurance comes in two categories: the lender's policy and the owner's policy. The owner's title cover safeguards your rights as the buyer, while the lender's option protects the loan on behalf of the lending institution. The owner's title policy safeguards the buying price of the property as long as you or your successors own it. This guide highlights important things that you should know about title insurance to help you understand these policies better. Title Searches vs. Insurance Reports show that most homeowners view title searches as protection against ownership problems. Title searches verify the validity of a property and thus are vital. However, you shouldn't close deals based on searches solely. You should also get title insurance to be on the safe side in case you discover hidden errors in the future. Both title searches and insurance are crucial since the insurance will shield you from liabilities that arise from errors that go unnoticed during searches. Payment Who will pay for the title insurance? This is a question that most homeowners ask before they seal any property deals. The party that pays differs between states, and in some instances, between counties. For example, in Southern California, the home seller bears the insurance costs, while in Northern California, the buyer does. In some states, such as Texas, the seller can buy one insurance type and the homebuyer the other, depending on their negotiation. Consult a title insurance firm within your area to know who is expected to take care of the payment before you close any deal. Cash Payment Another common question is; what if you pay in cash? If you buy a property in cash, you won't have to buy the lender's title insurance. However, you still need the owner's title insurance for protection. Regulations of Prices State governments determine the title insurance rates to ensure a fair price for all homeowners. You should, therefore, watch out for companies that charge more or offer you an unexplained discount because this is illegal. However, the regulation only affects insurance and not other related costs, such as wire transfer costs. Any additional coverage not included in the regular policy might also increase the price. For example, if you want policy endorsements, they will be considered an add-on, and thus you will pay extra cash. When you ask for a quote, get the final transaction price to avoid surprises during the closing day. Title Company Title companies play a significant role in protecting you since they conduct the title searches. If you work with an unreliable company, you might face issues in the future due to errors and omissions. Therefore, you should identify a reliable title company for the best experience. Be wary if a seller pushes for a particular company and strongly objects to your opinion. They may be hiding something. Go through a prospective company's reviews and look for referrals for safety purposes. Title insurance protects you from any property conflicts, errors in paperwork, and other defects. They might unearth significant errors that can affect the deal for your new property. The vital information in this guide can help you approach title insurance appropriately to avoid mistakes. Our company provides title insurance for residential and refinance transactions. If you want to avoid errors and protect your property, contact us today for quality services.

If you want to buy a home, include title insurance as one of the necessary services. Title insurance will shield you (and your lender) from financial losses related to defects in the property's title. Below are some of the specific losses that title insurance may cover. 1. Undisclosed Heirs If you want to buy a probate property, then you need consent from all of the heirs. Unfortunately, you might think you have the consent of all the heirs only for an undisclosed heir to turn up after you close the deal. For example, consider a situation in which someone dies and leaves their marital home to their three children. You then purchase the property from the three children. Shortly afterward, someone appears to claim ownership of the property by virtue of being the deceased's child from a previous marriage. Your title insurance may cushion you from the losses related to the claim. 2. Forgery or Fraud The real estate industry experiences millions of dollars' worth of fraud every year. People forge documents such as deeds, transfer documents, and even wills. For example, you might inadvertently purchase property whose title a fraudster has used to secure loans. Without title insurance, you might spend considerable resources to protect your purchase. 3. Boundary Dispute Sometimes owners of adjacent property might not agree on the location of the boundary line. For example, you might purchase a piece of land with a huge oak only for the neighbor to claim that the oak lies on their side of the property. Depending on the inclusions of your title insurance, the title company may help resolve the boundary dispute. 4. Property Liens A property lien is a legal claim that a third party has on your property. For example, the government can place liens on your property if you don't pay property taxes on time. Other than tax liens, here are additional examples of property liens. A mortgage lender, if you default on mortgage payments Judgment liens from creditors Child support liens if you default on child support payments A problem arises if you buy a property only for a previously undisclosed lienholder to emerge. Since you had nothing to do with the lien, your title insurance may protect you from losses associated with the liens. 5. Conflicting Wills A mistake, fraud, or accident may lead to a situation where more than one will bequeaths the same property to different parties. An example is if you buy a probate property from a beneficiary only for another beneficiary to come up with a different will that bestows the property to them. Maybe the deceased did not revoke the initial will properly. Most of these conflicts require the court's intervention to resolve, which costs money and time. Appropriate title insurance should cushion you from the associated losses. 6. Adverse Possession Adverse possession may arise when a person claims legal ownership of a property after they have occupied the property for some time. For example, a squatter who has been on a property for a long time may claim legal rights to the property. If you buy such a property, you may have a hard time evicting the squatter. In some cases, the squatter can even succeed with their legal claim. Fortunately, the right title insurance can protect you from such losses. The coverage and exclusions in title insurance policies may vary by insurance company. Consult your title insurance company for full information on what they cover. At Western Title Company, we have the backing of multiple underwriters to ensure we will always come through for you. Contact us today for a quote on title insurance, and we will be glad to help you.

The purchase of a house is a complicated process, which makes sense since it's likely to be the biggest purchase you'll ever make. In between the time you make the offer on the home and walk into the closing meeting, you'll need to go through several steps. Below are some of the most important ones leading up to the closing. Set Up an Escrow Account An escrow account is a holding area where important documents, such as relevant contracts and an earnest money check, are kept safe. The escrow agent is usually someone from the real estate closing company, title company, or an attorney and is a neutral third party who oversees the money and documents until escrow is closed. Earnest money is a good faith deposit on the buyer's part. You'll make this deposit after the seller accepts your offer on the home. If you don't follow through on the transaction, the seller will get the check. However, the check won't go to the seller until all contingencies from the inspection are solved. All of that information will be part of an escrow agreement. Obtain a Home Inspection Report As your real estate agent showed you around the house, you probably didn't do an in-depth inspection. You saw a potential home that was likely staged to show it in the best light. However, before you can close on the house, you must obtain a home inspection. Home inspectors are primarily looking for issues of safety or health. They also consider the following: Water damage HVAC system issues Electrical system issues Structural issues Roof damage Plumbing issues Pest infestation After inspecting the house, the inspector will provide a report, usually within a week. In fact, the inspector may ask you to come along so they can show you first-hand what they notice. Based on the results of the inspection, you can renegotiate your purchase contract for price adjustment or to include repairs. Get an Appraisal A similar inspection is the home appraisal. A professional appraiser will visit the home at the mortgage lender's behest. The appraiser's job is to give an estimate on the market value of the house and report back to the lender. As the buyer, you'll likely pay the fee for the appraisal. The home appraisal is two-fold. It protects the lender from doling out more loan money than the property is worth. It protects you, the buyer, the same way by ensuring you're not upside down on your house before you ever moved in. Buy Title Insurance As part of the title-transferring process, a title research company will conduct a title search. They'll check the ownership history to ensure the property has a clear title, which means the current seller has full ownership of the property and is allowed to sell it. Your lender will usually require that you buy title insurance to protect their investment. An issue can turn up, such as an overlooked tax lien or unidentified heir, later down the road. The title insurance protects the lender from losing money due to such a title defect. You only pay once for title insurance. You'll also have the opportunity to buy your own title insurance for the same protection. Insurer title insurance only protects the mortgage company. However, the issue might not show up for years, once you've built up equity in your home. Title insurance isn't that expensive weighed against the protection it affords. Conduct the Final Walkthrough Typically, the final walkthrough occurs the day before your closing. You'll go through and check for any unresolved issues. If you agreed with the seller on any repair work to be done, you'll look then for the repairs. You should also check all light fixtures, sinks, toilets, windows, and the HVAC. Look also for any new damage. The home should be in the condition you agreed to buy it in. If any issues come up from the final walkthrough, your agent should be able to get money from the seller's proceeds to solve them. Contact Western Title Company if you have additional questions about title insurance.

Most homebuyers need title insurance when they purchase a house, but many are unfamiliar with this type of insurance and what's contained within the policy. If you need title insurance, learn about four common terms that you'll likely find in your policy and what each of the terms mean. 1. Lender's Policy A lender's title insurance policy is issued to a bank or other financial institution that underwrites a mortgage on a home. Should an issue arise with the title that negatively affects the lender, this insurance will protect them up to the amount of the mortgage. Importantly, a lender's policy offers no protection for the homeowner. If you finance your home purchase, the lender that holds your mortgage almost certainly has a lender's title insurance policy. Should you refinance your mortgage, the lender that you refinance with will get a lender's policy to protect them. Although a lender's title insurance policy protects the lenders, the lender doesn't pay the costs. They're in the closing costs, which the homebuyer usually pays at the time of closing. 2. Owner's Policy The owner's title insurance is title insurance that protects you as the homeowner. A basic owner's policy offers protection against many common title-related risks, such as incorrect signatures, restrictive covenants, and judgments against a home. If you want protection against other specific risks, an extended owner's title insurance policy can provide more protection against specific risks. This broader type of title insurance may cover: Permit violations Subdivision issues Living trust problems Encroachments in the future Structural damage caused by mineral extraction Most of these, such as living trust and mineral extractions, are only relevant in certain situations. When they are relevant, though, the added protections can prove invaluable. If you are unsure whether to purchase a basic or extended owner's title insurance policy, speak with a real estate attorney about the particulars of your home purchase. An attorney will be able to review your situation and help you assess what risks you might face. 3. Encroachment An encroachment occurs when one property's structure crosses the boundary between that property and an adjacent one. This theoretically could occur with a house itself but is more likely to occur with secondary structures. Sheds and fences frequently placed near the edge of a property, for instance, are apt to cross over the boundary too much. Sometimes, a secondary structure is easy to move with simply repositioning if it's too close to an adjacent property. Other times, though, a structure is more permanently installed and can't be moved without incurring substantial expense. In these situations, having title insurance that covers the error can be helpful. 4. Escrow Escrow is useful in a variety of high-value purchases and financial transactions, often including home purchases. In this practice, the funds that will make a purchase go into a third-party account until the date of the purchase. On the purchase date, the funds fully transfer to the seller. In a homebuying situation, escrow ensures both the seller and the lender that the buyer can indeed afford the purchase. When you purchase a home, you should expect to put all of the closing costs that you're responsible for - which likely include title insurance premiums - into escrow. Thus, you'll need these funds available before your actual closing date. Your real estate agent will be able to recommend a financial institution that has a suitable escrow account. They'll also know the total amount that you need to put in escrow and when the money must transfer into the account by. If you need title insurance for a new home, contact Western Title Company .

First-time buyers will encounter many steps that must be completed in order to finalize the purchase of their dream home. One of the most critical steps is purchasing title insurance. Since title insurance is limited specifically to real estate purchases, you probably won't have a lot of experience with this type of insurance product if you are a first-time buyer. An estimated 35% of all real estate transactions will be delayed or canceled as a result of title-related problems. This statistic can help you see just how important title insurance is. Learn all you can about title insurance before you submit an offer on your dream home so that you will be prepared to use your title insurance policy to maximize your financial protection in the future. 1. The Role of Title Insurance Most of the insurance policies that you will purchase throughout your lifetime are proactive. This means that your policies will offer protection against events that may occur in the future. Title insurance is unique in the sense that it is a reactive insurance product. Your title insurance policy acts as a means of protection for your ownership rights in the event that a title mishap from the past resurfaces. The value of any real estate transaction is significant, so having protection from past errors in place allows you to rest easy about spending a large sum on your new home. 2. Title Searches and Policy Purchases All real estate transactions should include a title search. The title search is usually conducted by the same company that will be administering your title insurance policy. All documents pertaining to the past ownership history of the property you want to buy will be carefully examined. The title search is designed to identify liens, fraudulent title transfers, and past boundary line disputes that might have an effect on your ownership rights moving forward. Any issues discovered during the title search will be brought to the seller, and the seller can choose whether or not to resolve the issues. If the seller opts to forego resolution, you will not be able to secure title insurance. You can still complete the purchase of the home, but you will be assuming legal liability for any title-related problems that arise in the future. If the seller does resolve the title issues or the title company finds no problems during the title search, you can invest in a policy that suits your needs. 3. Owner's Insurance and Lender's Insurance Two types of title insurance will be required for most real estate transactions- owner's insurance and lender's insurance. If you are financing your home purchase, you are not the only one with a vested interest in the property. Your lender will require that you pay into a policy designed to protect their investment in the event of a title problem. The cost of a lender's policy is typically a percentage of the total loan you take out. You will make monthly payments along with your mortgage, and the lender's policy will automatically expire once you have repaid the loan in full. An owner's policy is your own personal protection against title issues. You will pay a one-time title insurance fee when you close on your home, and the owner's title insurance policy will remain valid for as long as you own the property. Owner's title insurance costs are based on the market value of the home as a whole, not the amount you have requested from a lender to finalize your real estate purchase. Title insurance is a vital but often-misunderstood part of the home-buying process. Contact Western Title Company for help if you are a first-time buyer, and we can answer all your questions about title insurance.

During a particularly brutal divorce (or even just a break up), an ex-partner may try to sell your home. Even though you both own the home, one of you can't decide to sell it. Both of you need to sign the paperwork for the sale to be legal. But what should you know if your ex suddenly sells your property without you knowing it? Read below to see how to resolve this sticky situation. What Happens If Your Ex Sells Your Home? Your ex can't legally sell your co-owned home without permission. Generally, what happens in the case of a divorce (or a separation) is that you will transfer the deed to one of you, or you'll sell the house together. The negotiations are the important factor. You might negotiate to pay money to your ex in exchange for them signing over the deed to you, or vice versa. Either way, the deed has to be in one of your names or both of you will need to sign off on the sale. But, what happens if your ex does sell your home? When this happens, your ex is in possession of the money from the sale, and someone else entirely has possession of your house. That can be a complicated legal situation. Can the Title Insurance Help You? This is where title insurance often comes in. Title insurance is something that the buyer of your property purchases during a real estate transaction. This insurance should be your protection against whatever your ex did to sell the house without your permission. A title insurance company can make the buyer whole again from the transaction, which means that you'll be able to get your house back without much of a fight. The title insurance will go after your ex-spouse on their own as well. This is one of the reasons why title insurance is so incredibly important. What If the Buyer Didn't Have Title Insurance? Whether the buyer did or didn't have title insurance doesn't impact your rights as the owner of the property. But it does make it more complicated. The issue is that the buyer doesn't deserve to have your home, but they also are out of money that went to your ex-spouse. If your ex-spouse refuses to give the money back, you need to pursue more complex legal avenues. You still have the right to your property, but without title insurance, you will usually need to get a real estate attorney. They will show that you didn't sign any of the documents required to sell a house, and that you have every right to your property. How Can You Be Made Whole? If you aren't interested in the property itself, you have the option of leaving the buyer the property and trying to secure the proceeds of the sale from your ex-spouse. This is again something that will need to be done with the help of an attorney and the court system. But if you want your house back, and the buyer had title insurance, it will be a relatively straightforward battle. Your deed to your house gives you the rights to that house, and if someone else tries to sell that house, you can counter it. But because real estate transactions are so large, and because a house is a significant asset, involving professionals is usually the best option. Likewise, this is one of the more important reasons why people should always consider title insurance. No matter what real estate transaction you want to make, look into getting title insurance so everyone is protected. For more information about title insurance, contact Western Title Company .

Even if you have purchased a home, you may not be familiar with the term title insurance . Alternatively, you may have never heard of title insurance, but you may have heard some real estate horror stories. Because of these stories, you may look for ways to ensure that you are safe with your new investment. Not familiar with title insurance terms? Keep reading to ensure that you have the vocabulary down. Closing The process of closing a real estate transaction is the last step. During this stage, ownership of a home transfers from one party to another. Defect A defect refers to a factor that might restrict the transfer of the property. A defect might be a mortgage, judgment, or lien. This defect is also often called an encumbrance. On the other hand, a material defect refers to a specific issue with the home's structure. The defect typically impacts the value of the home. Adverse Possession Adverse possession of a home occurs when somebody not authorized to be on the land occupies it. The owner does not consent to this act. Some people refer to adverse possession as squatting. After several years of living on the land, the occupier may be granted its ownership. Easement An easement is a right one individual has to use land or property in a specific way. This right is non-possessive, which means that an individual or organization can access the property, perhaps to pass through to another piece of property. In some cases, utility companies have easement rights. Some people may refer to the right to pass through a property as egress as well. Foreclosure Foreclosure is the legal process in which an individual with a mortgage is deprived of his or her property because he or she did not comply with the terms of the mortgage. If an owner forecloses on a house, he or she may not be able to live on the property anymore and the lender may take ownership of it quickly. Deed Restrictions Deed restrictions refer to conditions and restrictions placed on a property that might limit the type of construction or use associated with the property. Deed restrictions can impact your ability to make certain improvements to your home. Zoning issues may come into play when you discuss deed restrictions. For example, the city may rezone a neighborhood for residential use when it was originally for both business and residential purposes. Clear Title When the title to a property is clear, it lacks any sort of lien or claim. When the title is clear, nobody has any questions in regards to who owns the property, and you do not have to worry that somebody else may own the property you want to buy. Lis Pendens Some properties have lawsuits pending. The lis pendens is a written notice of such a lawsuit. If you try to purchase a property with a lis pendens, you may discover that the property is non-transferrable to you even after you think you have closed the deal. One of the ways to end property disputes and quiet any challenges to a title is through a lawsuit called an action to quiet title. Title Insurance Title insurance protects its holder from losses that may develop because of a title defect. When you have insurance, you can protect yourself from situations like adverse possession with a property you wanted to purchase. Western Title Company offers title insurance for individuals buying homes. Fortunately, you do not need to know all the details when you have a knowledgeable company on your side. Call us today to discuss your options for title insurance.

Purchasing a for sale by owner home will save you thousands of dollars in real estate agent fees, but you won't have an agent to guide you through researching the house. Instead, you'll have to conduct all the due diligence yourself. Thankfully, you can do this in a few easy steps. Step 1: Research the Neighborhood If you haven't already thoroughly researched a home's neighborhood before you go for a showing, do so before placing an offer on the house. Check the nearby crime rates with the local police department, and ask the school district how their standardized test scores compare to other districts. These not only have a large impact on quality of life, but they also greatly influence a home's resale value. Even if you don't have kids in school, being in a good district will help you resell the house for more whenever you next move. Step 2: Check the House's Structure and Systems Shortly after closing, hire a home inspector to check the house's structural integrity and various systems. A home inspection normally costs a few hundred dollars depending on the size of the house and what exactly is checked during the inspection. This investment, however, could pay for itself if you uncover an issue that would cost hundreds or thousands to fix. The report from a home inspection will ensure you understand what condition the house is in and plan for any major repairs that the house might soon need. If repairs are necessary, you might negotiate to have the seller complete them before closing or decide to have them done yourself afterward. Even if you have experience working in construction, you should still hire a qualified home inspector to check everything in the house. A trained home inspector knows what to look for in a house, and they aren't emotionally invested like you, the buyer, are. They'll probably notice things you accidentally overlooked. Step 3: Conduct a Title Search and Purchase Title Insurance Many homebuyers give little thought to checking the title of a house, but this is one issue that should never be overlooked. A title determines who legally has the right to a house, so you want to make sure the title on your home ends up fully yours. There's rarely an issue with home titles, but the ensuing problems can be devastating if they do arise. Checking the title on a home is a two-step process, but a single company can handle both steps. First, the company will conduct a title search that looks to see whether anyone else has claim to the home's title. This confirms that the seller indeed does own - and can legally sell - the house. Second, the company will underwrite a title insurance policy just in case an issue that hasn't been discovered yet arises later on. If there is some undiscovered problem or a person tries to make a claim years later, this insurance will provide you with protection. Whenever you purchase a house in Texas, specifically, make sure the title search and insurance apply not to just the house structure itself but also to the mineral rights of the land that the house sits on. Mineral rights in certain parts of Texas are worth a lot, so you ought to make sure you also have legal claim to those after closing. Step 4: Conduct a Lien Search A lien search checks for outstanding loans that are held against a home. Have the company that conducts your title search also perform a lien search so that you know what lenders have claims against the property. Any outstanding liens should be paid in full at closing. To have a title search or lien search conducted on a home that you're buying, contact Western Title Company.

The next time you are in a public place like the mall, a coffee shop, even a restaurant, take a look around you. How many people do you see that are looking at a digital device that has internet capabilities? There are quite a few, aren't there? Most are probably just perusing their social media accounts. They might be seeing whose sister just had a baby or they might be checking out who had the coolest looking dinner last night; however, a handful of those people may actually be conducting large transactions, such as wiring money to purchase a house. This sounds really amazing and convenient, and, don't get me wrong, it really is! We live in amazing times. We can purchase groceries from our phones and have them delivered to our homes. We can have that beautiful anniversary gift (that we almost forgot) ordered, overnighted, and delivered to our office the day of our anniversary (no, not personal experience). We can even complete real property purchases online. It starts with loan applications being submitted online and can end with online signatures of closing documents. We, as a title company, are excited to see this shift in our industry, but our excitement is a bit subdued by the fact that so many things can be hacked, fished, copied, frauded...stolen. Here are a few things to consider during all steps of a real property transaction:  1.) When entering any personal information into a website, make sure the website is secure. Most browsers will tell you either with wording ("Not Secure") or imagery (a broken lock), but if you don't see either of those indicators here's the best way to check: secure websites are HTTPS and unsecure websites are HTTP. See the difference? That sneaky "S" means secure. Make sure you lender's site, your realtor's site and your title company's site all have that "S" before sending any information through it. 2.) Emails may be the trickiest thing to deal with during a large transaction. Hackers have so many ways to spoof other's emails and they know to watch lenders and title companies. They monitor emails from lenders and title companies and when they see a transaction in process, they sit quietly and wait. They see all of the correspondences from the buyer to the lender and lender to the title company. They learn all of the little details necessary to really duplicate an email. They lean everyone's names, titles, where they work, etc., then when the moment is right, they strike. Many hackers will try to use fake email addresses and simply change a capital "I" to a lowercase "l" or something like that. A lot of newer hackers have figured out how to duplicate an email address perfectly!!! (Scary, right?!?!?) So, here is one way to check: before opening ANY email, simply scroll over the email address from the sender and make sure they match. 3.) If everything looks alright from the sender and you open the email, make sure you do not click on any links within the email before checking them, as well. The best way to check is on a desktop, as mobile devices usually don't have these "scroll" features. Scroll over the link. A web address should pop-up in the lower portion (usually lower left) of your browser. If it does not match the link in the email, don't click it. If it does match and you are still feeling iffy about clicking (or you are still using that mobile device), type the URL directly into your browser and see what web page comes up. Is it secure? If you are STILL iffy, call the person that supposedly sent you the email. Lenders and title companies are highly aware of the scams that are out there to take your dreams from you, and we want to keep you safe! So , never hesitate to pick up the phone. 4.) Call to verify any documents that are sent to you before opening and editing them. This one is as simple as that. 5.) NEVER wire any money before contacting either your lender, realtor or title company via phone. Hackers know the perfect time to send fake wiring instructions. They will coincide with the timeline that you are expecting. Again, we are all here to help you get where you are going. It is our job to make sure your transaction goes smoothly and that you get the property you are trying to get. So just call. Do not worry about bothering the person on the other end of the line, your future depends on it. If you are in the middle of a real estate transaction, we sincerely hope that these few cyber tips help keep you safe. There are many ways to stay safe on the internet and to conduct these transactions without worries, but honestly, the best policy is simply to pick up the phone and verify any emails or websites that would contain personal information. If you are ever concerned about your transaction or have questions, feel free to call us! We love what we do because we get to be a part of making dreams come true. 806-793-070

A mortgage title is the legal proof of ownership, either partial or full, in a property. The title is necessary when you buy, sell, or refinance. A clear title enables a mortgage closing to take place without delays or extra expense, and it ensures the homeowner can enjoy their purchase. Home buyers should be aware of the potential problems that can arise during the closing. Unreleased Deed of Trust A deed of trust remains held by a Public Trustee until a borrower satisfies their debt to the lender. An unreleased Deed of Trust means that the records office has not released the deed because they were not notified of the payoff of the debt. It does not mean the loan was not paid, but it will officially show a lien against the property until the release. The owner of the property must prove the load was paid to have the deed of trust released. If the property owner cannot do this, the seller cannot offer a clear title to a buyer. In many instances, the problem is a paperwork error and other documents may show the loan was paid in full, but the release of the deed of trust is still necessary. The property owner must contact the lender and have them submit a written request for the release to the Public Trustee. The Public Trustee verifies the request and submits a release form to the appropriate county records department. The length of time to complete this transaction can vary based on how long ago the loan took place and on the efficiency of the lender. Break in Title Chain The history of ownership of a property is known as a title chain. The chain shows all transfers of the property since it was established and becomes a historical timeline of the people or entities that held the title. Missing links in the chain can become an issue when a home sale takes place because it could signal an intentional omission for a variety of reasons. Research must take place to determine if the break is due to simple bookkeeping or paperwork submission errors. The break may also be genuine and mean that someone else has a claim of ownership on the property. Investigations of what the break means will determine the next step the seller of the property can take or if the buyer should reconsider their purchase. Real Estate Deed Fraud Many types of fraud exist in the real estate market. People may pretend to be a homeowner to sell a property. Some people do not have genuine notaries on-site as required by law. People may transfer property to themselves or coerce the owner to do so and then sell the illegally gained real estate to someone unaware of the problem. Identity theft is also a modern concern. Sometimes the fraud was not done with criminal intent. A child may have signed paperwork for a parent at their wishes, but without the legal right to do so. If fraud is suspected, the buyer of the property may not be the owner. At that point, it is possible to lose any investment or rights in the home and face eviction. Some title or deed issues arise during the title search and only slow down a closing. Other issues can stay hidden and surprise homeowners years after the sale. It is possible to lose a home even after paying a mortgage for years due to these concerns. Security is important for a home buyer. At Western Title Company , we protect you against ownership claims and many other title-related issues. Contact us today.

As a first-time home buyer, you probably want to protect your investment from anything that could possibly happen. So do the lenders who give you the mortgage. In fact, lenders often require title insurance, which differs from mortgage insurance and homeowners insurance. But what is it? Title insurance protects you, the buyer, from defects or problems with the property's title when it is transferred to you. If you are a first-time buyer, you need to consider this information before securing title insurance. What Does Title Insurance Cover? As a first-time buyer, you need to know that title insurance covers the events that have taken place before the transaction occurred. For example, a property may have undisclosed heirs, liens, or unpaid taxes that would deter the transfer of the home's title. Title insurance also covers any pending legal action involving the property. Some people may not realize they actually do not have the right to sell a home they believe they own. For instance, an ex-spouse could still be listed as a co-owner of the home, or perhaps a sibling who was co-willed the property failed to sign off on the sale. Some unscrupulous sellers will try to use a home to commit fraud or to scam a buyer. For example, what might happen if the seller actually didn't own the property you purchased, thus having no legal right to sell it? Essentially, your title insurance will cover your legal fees and potential losses. Additionally, you should know that payment for title insurance is typically a one-time fee. You pay upfront rather than monthly, so title insurance will not break the bank. What Happens When You Buy Title Insurance? When you buy title insurance an organization or individual will check the title to see if any defects or problems exist. Surprisingly, about one in three title searches reveals a defect that requires fixing before the sale closes. When you purchase title insurance, you can clear up legal disputes or move on from the sale if something is wrong. Ultimately, the disputes become the seller's problem, not yours. You are not liable for existing issues related to the title. How Much Coverage Do You Need? Title insurance is typically straightforward. You may not need to include any specific additions for coverage. At the same time, you might consider that some extras are worth the security, even though they may cost more. For instance, you might need to add an addendum to your coverage that ensures any later construction to your home is covered in case the existing structure violates subdivision rules. You may also need to discuss coverage options with your lender. Some lenders have stronger restrictions. What Else Should First-Time Buyers Know? First-time buyers also need to understand that title insurance can serve a protective purpose. If a potential exists that you could be sued for the home, you do not want to overlook title insurance. Even if you have a title attorney or real estate agent by your side, you cannot guarantee that your title is completely clean. You don't want your home ownership to become uncertain. What Can Buyers Do? If you are buying your first home, you are going through a significant process that can change your life. You need to protect your assets and prevent losses by insuring your new investment. You can protect your home with title insurance when you buy your home. Western Title Company understands the need to focus on title insurance as a way to preserve your assets and maintain a strong financial future. Call us today to discuss your insurance options for you first home purchase.

It may make sense to use a title company on a commercial property that can cost millions of dollars. That is quite the investment and you want to make sure everyone (especially yourself) is covered. The title company will make sure money gets where it needs to go, they will make sure the chain of title is all in order, they will coordinate with buyers and sellers, realtors and lenders, and, if they are really good, they will be backed by a large enough underwriter to cover it all. It may make sense to use a title company on a luxury home. A few hundred thousand dollars is not something you want to throw in blindly and hope that no problems pop-up later. You want to make sure that no one can stake claim to your home one Forth of July while you and your family are out swimming in the backyard. You want to make sure that the previous owners don’t have any “hidden” liens that could cost you money and time in the future. You want to make sure that your luxury investment is fully covered. It may make sense to use a title company on a $60,000+ home, because this may be your first truly big investment, or maybe it is just your dream home! You want to make sure that no ugly surprises come lurking around the corner in the future. You want to make sure that your neighbor can’t put a stop to those improvements that you are planning to make. You want to make sure that your lovely home is truly yours. So, what about a $10,000 lot or investment property? Should you bother with a title company if the money that you are investing is not too much? The answer is, of course (you are on a title company’s website) yes. We joke about you being here on our website, but title insurance is no joke. You do need to use a title company for any real property transaction. A title company will do all of the digging necessary to uncover liens, encumbrances, heirs to title, false property sellers, and so much more to make sure that there is nothing that can come back and cause you issues and cost you money in the future. We absolutely love getting to work with people from all over our community. We have closed large commercial deals all of the state, we have closed medium sized commercial and residential deals, and we have closed many smaller deals throughout Lubbock County. If you are looking to buy real property, we have the resources, underwriters and knowhow to get your deal closed. We would love to talk to you today to discuss how we can help! Western Title Company 4202 84th Street, Lubbock, TX 79423 806-793-0704

A title search is a very important part of any real property transaction. A good title search can uncover all sorts of things that could challenge your ownership of the property or cost you a lot of money down the road. This is why it is so important to choose an experienced title company to conduct your title search. An inexperienced company may not have the personnel to know what to look for or the resources to uncover all of the issues that could be lurking in the property’s history. What does a good title search actually do? Uncover any Liens or Unpaid Mortgages: Liens are claims attached to a property by a creditor. Liens can be accrued by a number of incidences such as unpaid mortgages or homeowners association fees, unkempt lawns, construction, etc. Liens are given to a property and not the property owner, meaning that if there is a lien on a property you are purchasing and a title search misses it, that then becomes your legal and financial responsibility. A good title search can also uncover if any previous owners still owe any payments on the property. If this is missed in a title search, it could limit your use of the property. Confirm Your Ownership: An experienced title company knows how to look for any kinks in a title chain. They know what to look for to see if the person selling the property has full ownership, or if there might be another heir that could claim ownership at a later date. A good title search can uncover if someone selling property is legally entitled to sell it, has any rights to the minerals on the property or if someone else has rights to these things. You need a title company that knows how to search through the history and find anything or anyone that may affect your ownership. And Much More: Most real property has a history that you might not even believe. There are a number of things that could go wrong in the purchase of such a thing and a number of things that could be missed. This is why you should trust the people who really know. This is why you need experience on your side. Western Title Company has 57 years of experience, an in-house title plant that dates back to soil and a team of examiners that we stand behind. We love what we do, because we know it helps our clients avoid loss of money or property, and we think that is important. If our title searches are so good, why should you get title insurance? We stand behind our team of examiners; however, title is a tricky, involved thing. A deal closed at a previous title company may have missed a lien. Paperwork may have been filed incorrectly with the county. Someone may have passed away and not gotten a will probated. A number of issues can still arise, even with an exceptional title search. This is why title insurance is still important. We invite you to come see our in-house title plant. Come meet our closers. Come have a better experience. 4202 84th Street, Lubbock, TX. Western Title Company. Loving what we do. Since 1963.

Title insurance protects the investments made by homebuyers and the equity of homeowners. A home inherited from parents or another relative may seem risk-free, especially if the family member had ownership for decades. However, it is not always as safe as it may seem because of the many ways that problems begin. Inheritances Cause Rifts Family drama can hit a high note after people learn the details of a will. In recent years, family disputes over inheritances have steadily increased. In fact, the numbers of courtroom conflicts over inheritances jumped by 36 percent between 2015 and 2016. Stepfamilies, children born to unwed parents, and other arrangements once considered nontraditional, have become commonplace. The problem is not with the variety of family structures but with the number of people often intertwined in the relationships. The opportunity for confusion increases as the extended family grows. Siblings aren't the only ones who could question the ownership of a property when an old family home passes down. A property kept in one family for generations could face challenges from the heir's aunts, uncles, or cousins. A forgotten promise or an updated will can lead to animosity if not everyone receives a notice of the changes beforehand. Property Disputes Arise Your parents may have lived on the property for 30 years and they may have even had their own title insurance at one time. The fact that the ownership of the home and the land was conflict-free for years means nothing. An incorrect street name entered on a deed, the divorce of a prior owner, or a forged title given to the parents may have gone unnoticed. The problems begin when someone with a possible financial stake in the home takes notice and wants ownership of the house or sues the current homeowner for its value. Title insurance prevents you from the loss of a family home even if the claim is valid. Trespassers Want Ownership Sometimes neighbors encroach on an adjoining lot. Your parents may have allowed the neighbors to store their personal property across a boundary line or grow a garden on their land. Their actions are kind and neighborly, but they do open the door to something known as adverse possession. Adverse possession is the legal term for what most people know as squatter's rights. The idea is that anyone can claim ownership of the land they have used for a certain amount of time. In Texas, that amount of time could be as little as five years . Title insurance protects the rights of the lawful owner because it shows they have a researched, legitimate deed to the land. Thieves Steal Identities Identity theft continues to cost many innocent people their credit ratings, their bank accounts, and occasionally their homes. The thefts occur when people pose as the homeowner to access the equity in the property. Seniors are at risk more than any other age group because they usually have the most equity in their home. Title insurance ensures that the heir does not inherit a mortgage-free home only to receive a late notice on the payments a few months later. Not every title insurance policy offers this protection, so anyone concerned about this type of risk should speak to their insurance provider. At Western Title Company we can help homeowners recover their losses from defects in new construction to inheritance issues for older homes. Everyone should feel comfortable and secure in their home and the protection offered by this type of real estate insurance plays a significant role in that feeling of security. Contact us today to learn more about title insurance.

We all want to save a few bucks here and there, and if you can save a LOT of bucks, even better, right? Of course! However, sometimes the savings come later rather than sooner and if this is the case, the savings are usually greater. I am talking about why you should use a title company and get a proper deed drawn when purchasing any sort of property. Proper title work can actually save you money in the long run, and in some cases, we are talking thousands of dollars...or more! If you purchase any property without a proper title search, here are some of the messes you could find yourself in: Oh! The property had liens on it that you didn’t know about? Those are yours now. Liens stay with the property, not the owner. So if you ever plan on selling that property, you will need to pay those liens off. Ouch. Nobody likes paying for someone else’s mistakes. The Deed wasn’t notarized or worded properly? The courthouse may not except it. You move along thinking that that property is in your name because you exchanged money and hand-shakes, but according to the county, that property isn’t even yours and you will not be able to sell it when you are ready. You just gave your money to a criminal! The person you exchanged money with for that land wasn’t even the legal owner. A proper title search could have told you who the owner actually was and who had legal claims to the property, but now you’ve given your money away and the original owner still has all rights to that property. Even if the seller is related to the owner of the property, they still may not have any legal claim to it. Now you may have a legal issue on your hands. Lawyers and Title Companies see all of these, and more, all-to-often. There are usually ways to reconcile most of these mishaps, so call us to see if we can help you…but, it is always better to just completely avoid these situations by using a title company in the first place. Our extensive in-house title searches and our 55 years of experience can help you avoid all of these situations. We love helping people get new homes and grow their businesses, so call us today and let us help you save money for more important things. Contact Western Title Company to find out more .

Real estate involves a large trade of liquid funds, so, unsurprisingly, it also involves a large number of scams. With so many moving parts in the standard real estate transaction, you can easily lose track of what's going on. That's where escrow companies, title companies, and even real estate attorneys come in. Here are a few of the most common home selling scams that you need to be on the lookout for and how you can avoid them. 1. Intercepting Your Emails Email hacking is a surprisingly common scam that many people don't expect. Either your email account or your real estate agent's email account is hacked. When it comes to real estate scams, instead of sending a malicious program or tipping their hand, the criminal instead sends you an email that is meant to look like it comes from your escrow company. This email will tell you to wire your funds to a specific bank account, by a specific date. This email may change pre-established plans or may come before you expected your wire transfer information to come. Either way, once you wire that money, it could be gone forever. The reason real estate transactions use wire transfers to begin with is because they are secure and cannot be easily reversed. You can avoid this scam by always confirming directly with your escrow company, by questioning any changes, and by checking to see where emails really come from. 2. Selling a Home That They Don't Own Some criminals try to sell homes that they don't even own. This can happen if you're attempting to complete a sale individually with an owner. However, it can even happen through an escrow company. If you aren't getting a mortgage, you might not get a title search. If you don't get a title search, you may never know that the individual in question doesn't actually own the property. You should always get a title search. Even if you discovered later that the individual didn't own the home, a title search will be able to compensate you. A criminal could forge very convincing sets of documents that would otherwise constitute a title, but if any issues arise from this later on, the title company will help. 3. Forgetting to Mention Additional Encumbrances A seller could possibly "forget" to mention that a property has some issues that could significantly lower their value. This could commonly mean that there's some form of encumbrance on the property, such as a large easement through which multiple neighbors pass through. Again, this is an issue that only a title search would reveal. If you inspect the property, you may not find any easements in place. If you look at tax sales and other information, it's likely not going to be there. It will only be in the title search file that the title search company would look through. 4. Billing You Too Much for Services Finally, some unscrupulous real estate agents will attempt to convince buyers to use all of their own services, including their own title company and their own home inspector. Though this may not be an outright scam (you may still get the same services rendered), the real estate agent may charge more than you would pay otherwise. You have the right to use any service provider you want. Mistakes are one thing, but scams are much more dangerous. In a scam, someone is actively trying to trick you, and that makes it important to be vigilant. You can protect yourself with the right real estate agent and the right title company. Contact Western Title Company to find out more .

As a homebuyer, you have the right to choose the title insurance company you want to conduct a title search to determine whether the title to a property is valid. Don't let either the agent representing you or the selling agent lead you to believe you have no choice. Even if the seller pays for the premium, you still have the right to choose your own title insurance company. Professional Advice You can take the advice of a real estate agent, loan officer, or even an attorney, provided you feel confident in the title company they recommend. After all, you are entrusting the company's underwriters to validate the ownership of your new home. Since insurance protects them if there are problems with the title to the property, lenders generally require that you buy title insurance in order to close on a mortgage loan. Traditionally, the seller often chooses the title company since they need to show ownership of the property. However, you don't have to follow that convention. Under Section 9 of the Real Estate Procedures Act (RESPA) , a seller or real estate agent may not require that you use a particular title insurance company as a condition of sale. This protection helps ensure you get a title agent you can trust and who works for you. The statute also assures you receive the appropriate disclosures at the time you apply for a mortgage loan, before the settlement, and during the settlement. Agent Interests If a real estate agent or loan officer refers you to a particular title company, you may not get the best deal. Sometimes a real estate agent or loan officer reaps the benefit in the form of a referral fee or commission. When real estate agents or lenders are affiliated with certain title companies, they must provide you with a Controlled Business Arrangement (CBA) disclosure that reveals their relationship to a particular company. However, you are under no obligation to sign the disclosure and use the title company the agent refers. Similarly, a lender may try to sway you from choosing your own title insurance company. If a lender recommends a company or asks you to select one from a list, but you want to use your own company, you may have to pay a review fee, which adds to the closing costs. Lenders charge you the fee so they can have an attorney review the title work your company completes. Company Choice You may do better to choose an independent, local title company with a long-established history to handle your closing transactions. When you choose the title company, you can shop for a lower premium as well as make sure the company is financially stable. If you foot the bill, compare fees and any additional costs. Some title companies don't include the cost of other services they provide in the rate they quote. For example, find out whether preparing and notarizing documents is part of the fee or billed separately. Once you pick a title company to handle the lender's title insurance, you should consider purchasing an owner's policy to protect yourself if problems arise with the title later on. Buying a home is a huge financial investment. Therefore, it pays to protect any equity you have in the home. Escrow Agents If you pay for the lender's title insurance while the seller pays for the owner's policy, but you each use different title companies, the question of which company acts as escrow agent will come up. You can either negotiate which will act as escrow agent for the closing process or select a third party to act in the transfer of the property from the seller to you. If you have questions about your rights in regard to choosing a title insurance company, contact the staff at Western Title Company for more detailed information relating to these and other underwriting basics and costs

You need a title insurance company. Not only is it essential for protecting your investment, but many lenders require it to close on a mortgage. However, it's often up to you to choose which title insurance company you want to use. How can you figure out which title company is the best? 1. Are You Using the Seller's Title Insurance Company? Sometimes the seller or the seller's agent may recommend their own title insurance company. Though they likely mean well, this is a bad idea. You can assume that the seller already ran a search and found it to be clean. Your report from the title company isn't likely to be any different, but that doesn't mean that it's completely clear. Most title companies aren't working with original data. In other words they aren't doing their own legwork to find out whether titles are clear; after all, how could they? Deeds and liens are recorded with the government, not with the title companies themselves. Consequently, title companies aggregate data into consolidated databases from numerous sources. If the title company has already missed something, the only way to find out would be to use a different company altogether. This also means that you should ask your title company how they get their data, how current it is, and how comprehensive it is. 2. How Much Does It Cost? In many states, the cost of title insurance is actually regulated. However, if you're trying to save on closing costs, you may want to call a few different title insurance companies for quotes. If you get a quote that is surprisingly low or surprisingly high, ask the title company what makes their service different from the others. If they can't answer, they may either be cutting corners or overcharging, neither of which is a positive. 3. Are You Paying for It? Of course, you may also want to find out whether you're even paying for your title insurance. In some situations, the seller or your lender is the one who will be paying for title insurance. You'll still want to find the best company out there, but you may have less skin in the game financially than you thought. That doesn't mean you want the most expensive insurance available (it may not actually be beneficial to pay more), but you don't need to worry too much about it. In many situations, the seller will purchase their own policy and the buyer will purchase the policy for the lender. 4. How Are the Reviews? Title companies often have reviews available online that give an indication of how reliable they are. When it comes to a title company, it isn't always about accuracy; many title companies are going to be sufficiently accurate, and even if they aren't, they provide insurance for any errors. Rather than accuracy, you may actually want to focus on customer service. How fast does the title company respond to requests? How does it respond to claims? Are customers generally satisfied with the service or were they left hanging when big issues or large questions emerged? Online reviews can give you a better picture of what you'll get for your money. Title insurance tends to be a fairly small fee on any transaction, so it's easy to think of each title company as being the same. Though title insurance is an inexpensive closing cost, it's still one of the most important fees you'll pay. Like a home inspector, a title insurance company trades a small investment for a large reduction in risks. If you're looking for a good title company, consider contacting Western Title Company today .

A title insurance report will tell you a lot about a home's history. In particular, title insurance will tell you whether a property has any liens on it. When a home has a lien on it, the home cannot be sold until that lien is resolved. But you can get around a lien on a property, and a lien is not necessarily something that you need to be concerned about. Whether or not a lien is an issue for you depends on whether the lien is discovered before or after the purchase of a home. Finding a Lien Before a Purchase If a lien is found before a purchase, you can resolve the lien during the purchase itself. If you are the seller, you can negotiate with the lien holder to pay off the lien as a part of the sales transaction. If you are the buyer, you must get the lien released, but the sellers are still responsible for paying off the lien. Buyers who discover a lien on a property that they are interested in may consider dropping out of the transaction if the seller is not able to pay the lien. The sale of a home is not going to close until the lien is resolved. Sellers will need to forfeit part of their proceeds to fulfill the lien and may want to consider increasing the amount they are selling their property for paying the lien this is going to be a hardship. Ultimately, however, a lien is not difficult to resolve during the process of a real estate transaction. If a seller is selling their home for $300,000 and owes a $20,000 lien, the person selling their home will simply collect $280,000 at the end of the sale and the $20,000 will be automatically forwarded to the lien holder. This process ensures that the buyer's property is purchased free and clear without having to rely on another third party. Title insurance is designed to identify liens during the sales process so they can be resolved this way. Finding a Lien After a Purchase You can find out about a lien on a property without title insurance. One way is if the lien simply wasn't properly recorded until after the sale. If the lien was in the act of recording, for instance, the lien may record after the property has transferred. In many cases, the lien isn't going to be enforceable, as it wasn't recorded on the property before the sale. If your title insurance company made a mistake while you were buying the home, you're in luck because you also won't be held responsible for the lien. Sometimes you won't have a complete picture of a real estate transaction because these real estate transactions are so complex. Title insurance protects you from hidden mistakes. But if you discover that there is a lien on the property and you didn't have any title insurance, then the lien is still the debt of the original owner, complicating any future sale of your property. One way or another, you're going to have to find a way to get the lien itself resolved if you want to transfer the title to another owner. As a seller, you need to find out about any potential liens and to resolve them early on. Your real estate agent and your title agency should let you know about any liens. As a buyer, on the other hand, it's important to purchase title insurance so you can avoid any messy legal and financial situations later on. For more information, contact the experts at Western Title Company . ​

Closing, also known as settlement, is the victory lap. After what seemed like forever, the day has finally arrived where you get to call the house your home. Overwhelmingly, buyers walk away celebrating the day with their new keys in hand. However, there are some buyers who find themselves facing a literal nightmare on closing day, and some even face their nightmare after closing. Learn what some of these common scenarios are. Mortgage Loan Disqualification Nothing could be more gut-wrenching than to find out just before closing that you no longer qualify for the mortgage loan, but it can easily happen if you're not careful. When buying a home, people put so much effort into preparing their finances for the mortgage application process. From paying down their credit card balances to increasing their savings to eliminating unnecessary debts, they are the perfect financial student. The problem arises when buyers don't continue these practices. The most important thing to understand is that until the loan is finalized, you're really on working with a pre-approval that is based on your current financial status. These approvals typically last somewhere around 60 and 90 days. If you were to fall behind on your credit card payments, buy a new car, or slash your savings before closing, this will change your financial status and could put your loan approval in jeopardy. Property Tax Lien Discovery You've been in the home for a few weeks; everything is going well. However, one day you get a notice telling you that there was an existing lien on the property and as the new owner, it's been passed on to you. Liens are a form of debt collection and are commonly placed on a property by state and federal agencies for unpaid taxes. Since the lien is on the property and not the owner, if you didn't discover it before closing, it will automatically transfer to the new owner. If the lien is not in error, this discovery puts new owners in a terrible position, particularly when they are ready to sell the home. Fortunately, there is a way around this challenge, and it comes in the form of title insurance . Title insurance is a safety net that aims to highlight discrepancies like tax liens before closing. Appraisal Lower Than Asking Price One of the final steps before closing is the appraisal process. The purpose of this action is to confirm that the property sells at a fair and accurate price. As part of this assessment, an appraiser will look at the property's features, collect data about the neighborhood and even examine the recent sale history of other properties in the area. Although the mortgage company orders this step, it is a protection tool for lenders and buyers alike because it ensures that you aren't buying a property for more than it is worth. The nightmare for buyers arises when the appraisal for the home comes back significantly lower than the selling price. A lender will not pay more for a property than it is worth, which puts your loan approval and the entire deal on shaky ground. In this type of situation, an experienced realtor is valuable, as they can go back to the seller with the appraisal and try to negotiate a lower price so that the sale can continue. The home buying process can come along with hurdles, but it is a truly rewarding experience. For all buyers, proper planning and research are key to avoiding these, any many other, last-minute challenges. At Western Title Company, we are happy to help you get through the process successfully.

The home buying process can be mystifying and even downright scary at times. Much of the anxiety surrounding the buying process results from the use of unfamiliar terms. One such common term that can confuse buyers is points, a term that actually carries multiple meanings depending on its application. Below is more information on points and their relevance to homebuyers. What Are Points? In the world of finance and investment, a point is defined as a unit of measurement derived from a percentage. In the case of home lending, each point equals one percent of the loan principal. For example, one point of a $250,000 home loan is $2,500. It's not difficult to calculate the dollar value of points, but much of the confusion lies with the specific application of points. Under the broad umbrella of points, there are two subtypes of points that homebuyers should understand when entering the financing process. These are explained in further detail below. Origination Points Origination points, sometimes called mortgage points, are paid to the lender in return for their services. It can be helpful to think of origination points as the commission earned by a mortgage company. These points are often lumped together with the other origination fees, such as processing and underwriting fees. As an example, a loan with one origination point on a $300,000 loan would provide a $3,000 payout to the lender at the time of closing. Some lenders don't charge any origination fees, thus the buyer pays zero points at the time of closing. Of course, lenders will transfer their expenses to another area of the loan, such as the mortgage rate, so any savings may be short-lived. Discount Points The second type of points used in mortgage lending is discount points. Each discount point carries the same value as with origination points - one point per one percent of the principal amount financed. However, unlike origination points, discount points refer to an interest rate reduction. Each point lowers the interest rate by one-fourth of one percent, or 0.25 percent, in what is known as a buydown. Borrowers can purchase points from lenders and use them for buydowns. For example, for a prevailing interest rate of 4.5 percent on a $200,000 mortgage, a one-point buydown will cost $2,000 and lower the interest rate to 4.25 percent. As a result, the monthly payment for a buyer who purchases points will decrease. This is beneficial for buyers seeking long-term financial gain by keeping interest costs lower than what might otherwise be possible. It is important for borrowers to keep in mind these benefits take time to realize, as the initial expenditure for points won't be repaid for a period of several years. Discount points can also be used to provide buyers with upfront cash to be used in a real estate transaction. Instead of buying points for the purpose of lowering an interest rate, buyers "sell" points to the lender in exchange for credits that can be used for a variety of closing costs. For example, in a transaction involving a $200,000 mortgage with a 4.5 percent interest rate, a buyer can sell one point to the lender for $2,000 of credit to be used to reduce closing costs. In exchange, the interest rate will be raised to 4.75 percent and the monthly payment will increase accordingly. However, over the full life of a 30-year fixed-rate mortgage, buyers who sell points will eventually pay back far more than what they received upfront. Buyers who are looking for short-term benefits may gain from selling points, but they should also beware the long-term costs. If you have questions about origination points or discount points, contact Western Title Company for help. They can provide information that will help you better understand the details involved with points and will show you how the entire package fits together during closing.

Most home buyers purchase title insurance at closing in order to protect their new property from potential ownership issues. This is an important investment, but it's not a small expense. Title insurance often costs between $1,000 and $3,000 —and it can be higher. If you're about to buy a home, here are some ways you can save on this expense without sacrificing protection. Get Quotes from Different Insurance Providers Title insurance is different from other types of insurance, and it's often offered by insurance providers that aren't as well known as the major homeowners and auto insurance providers. Getting a good deal on title insurance isn't different from getting a low rate on any other type of insurance, though. Getting the lowest price possible starts with shopping around. Rather than simply purchasing title insurance from the company your real estate agent recommends, which is what many home buyers do, request quotes for policies from several different companies. You aren't obligated to purchase title insurance from the provider your real estate agent recommends, and you may find that another provider has lower premiums. Whether you're able to save on premiums by shopping around for a title insurance policy will depend a lot on what state you're purchasing a house in. In highly regulated states, premiums are overseen by the government and providers aren't able to adjust them much. In less regulated states, there's more variance among providers' premiums so you may save more. Negotiate the Add-On Fees Regardless of how regulated title insurance premiums are in the state, you can negotiate the add-on fees that a provider charges. These fees are separate from premiums, and the vast majority of title insurance providers charge them. Some examples of add-on fees include: Postage and courier fees Copying fees Search fees Certificate fees Rush fees These fees aren't regulated as much as premiums are, so they can vary significantly from provider to provider. The lack of regulation also means that providers are able to adjust these fees as they deem appropriate. While some set higher fees, others may have lower ones—some providers may even lower their fees if you ask them to. Of course, the most effective way to negotiate fees is to get quotes for fees from different providers and then use the quotes as leverage in your negotiations. If a provider really wants your business, they'll either match or beat the competition's fees. Bundle Policies for a Discount Although title insurance providers sometimes specialize in title insurance and may not offer other types of insurance policies, it's still possible to bundle multiple policies together. You'll often get a discount for doing so—sometimes it’s a significant discount. In many cases, home buyers don't only get title insurance for themselves. They often also purchase it for the lending institution that underwrote their mortgage. Purchasing it for a lender is often required by a mortgage's terms and conditions. While these policies are written separately, they can usually be purchased together. The discount offered for buying yours and your lender's title insurance rate is sometimes referred to as the simultaneous issue rate. The simultaneous issue rate normally includes the standard rate for your policy but a much lower rate for your lenders. Since you are purchasing both, you effectively save money and receive something that's akin to a multi-policy discount. Ask the Seller to Pay for Title Insurance As a final measure to save on title insurance, you can ask the person you're buying the home from to cover the title insurance costs. Title insurance is usually purchased by the homebuyer, but a motivated seller might be willing to pick up this expense. If you're buying a home and want to know how much title insurance will cost, contact us at Western Title Company.

It can take weeks or months from the time you make an offer on a house to the date in which you close on it and take possession. These weeks or months can seem like an eternity if you are overly anxious to move in. Waiting on the paperwork is a normal part of the house-buying process, but there are things you can do to speed up the process and ensure that you have a smooth closing. Choose Your Title Company First When buying a house with a loan, your lender will require that you purchase title insurance . However, you should purchase title insurance even if you do not borrow money when buying a house. Title insurance is the only thing that protects you from defects in a home's title. When you purchase title insurance, the title company begins by performing a history search on the title of the home you are buying. The purpose is to verify that the seller actually owns the property and determine if there are problems with the title of the home. If the title company does not find any problems with the title, it does not necessarily mean the title is clear. However, it does mean the title company takes responsibility to remedy any problems that arise for as long as you own the house. If the title company finds issues with the title, the seller must fix them before closing. Negotiate Problems with the Title Problems with a home's title can interfere with the closing of a house. You cannot close on the house and take possession until the seller fixes the problems, and this is one of the reasons why it's important to hire a title company right away after making your offer. By hiring the title company right away, the seller will have time to fix the issues they find. A common issue discovered during a title search is a lien on the property. A contractor can place a lien on a person's home after a homeowner fails to pay for repairs completed on the home. To fix the issue of a lien, the seller must pay the bill in full, or the seller must fight the lien to get the court to remove it. Disputing a lien takes time, and this could hold up your closing if the seller does not take care of it right away. One important thing to note is that if you have title insurance and discover a lien at some point in the future that the title company missed, you can contact your title company and they will take care of the problem for you. Without title insurance, you would be responsible for paying the lien, even though it was not actually yours. Review All Closing Documents One other tip that will help you ensure a smooth closing on your home involves reviewing all the closing documents prior to your closing date. The title company that provides your title insurance does not only offer title insurance—they are also responsible for creating the paperwork needed for the closing. You should have access to the closing documents several days before your scheduled closing date. If you have not received them within several days before your closing, contact your lender to find out where they are. The reason you need them is to make sure they have been filled out properly. As you look at the documents, make sure the title company divided the fees accurately. For example, if the seller agreed to pay some of your closing costs, make sure the documents reflect this. If you get to closing and find errors, you cannot close on the house. If you find the errors ahead of time, it gives the title company time to fix the problems. Buying a house is a complicated process in many situations, but it can run smoothly. If you are ready to buy a house, contact Western Title Company for help with the title work you need to close on the property.

Sometimes title searches miss things or the individuals responsible for recording deed transfers make mistakes that can impact the ownership of a property. Therefore, when you purchase a property, buying title insurance coverage is a way to protect the investment you make in a home and the investment the lender makes in you. What It Is Title insurance involves a search of property records for assurance that the deed of the home or land you are buying contains no clerical errors and that there are no previous unknown liens, unpaid real estate taxes, or undisclosed heirs. The coverage title insurance provides also protects you against cases of fraud and forgery. In other words, a title search verifies that the person selling you the property owns it and has the right to sell it. If the company performing the title search finds an error, attempts are made to right the mistake before you close on the property. What title insurance doesn't do is guarantee that your ownership of the property won't come into question at some point in the future. Owner and Lender Policies A piece of real estate can change ownership many times throughout the years. Even though a title search tracks who owned the property at different points in time, problems sometimes occur. For example, title searches also look for easements and rights-of-way that affect the title to the property. Once a title search company issues you an insurance policy, coverage includes paying the cost to defend you in court if someone challenges your title to the property. Should you lose, the lender's policy pays off the mortgage, and the owner's policy pays you for equity you have in the home. Besides the standard coverage a policy includes, most companies offer the option of purchasing more coverage. Extra coverage will cost you more, but you may want extended coverage to protect against additional risks such as building permit violations, encroachment issues, or violation of subdivision restrictions. Premium Cost You pay only one title insurance premium—generally, at the time of closing. The policy then covers you for the time you own the property, even though you don't pay additional premiums to continue the coverage. Although companies vary in the prices they charge, if you are buying a property in an area where title insurance rates are regulated, companies will all charge about the same premium cost. However, be sure to ask about other costs. Even if you live in a state where premiums are controlled, companies can charge ancillary fees that add to the total cost of the insurance. The cost of the premium can also vary depending on the value of the property or amount of the loan. Who Pays for the Policies Since title insurance typically calls for the purchase of two separate policies or an owner's add-on to the lender's policy, who foots the cost depends on the state or county in which you reside. Often, though, the buyer pays for one policy and the seller pays for the other. In other cases, the buyer is responsible for paying for both owner and lender coverage, in which case you have the right to choose the title search company. Buying both owner and lender coverage from the same company can get you a significant discount. If you are in the process of buying real estate, the experienced staff at Western Title Company can answer questions you may have about title searches, title insurance policies, and the closing process.