How Important Is The Title Company?
One of the most popular questions we get is, “How do I choose a title company for my mortgage transaction?” We am often asked about title company fees and how and if the prices can vary from one company to another. Some title companies offer HUGE discounts. This is one of those things where you you have to be careful on what you ask for depending on what it is. In other words, you cannot be cheap when it comes to this type of deal, otherwise you will get what you pay for. We have heard countless horror stories that involve title companies failing to record deeds within a timely manner.
In most cases, the title company handling the loan transaction usually handles most, if not all of the legal side of the deal. Lien releases and recording of new documents are almost always handled by the title company. Many times these duties are separately contracted to other companies, which means that ownership needs to legally be transferred from one owner to another at the courthouse. Larger title companies have in-house staff that handle such activities.
Essentially, the title Insurance that covers the lender is required on all new mortgages. Due to this, it is very important that you ask your mortgage banker or title company if they offer reissue rates. This is where a highly experienced title company makes a difference. ALWAYS outweigh each of your options, because they may vary from to state to state.
Another major step in the process for a title company is paying off the current lien. Most mortgage transactions, purchase or refinance, require another lien involved to be paid off. Also, be careful because title companies have been known to defraud lenders.