Real Estate News

Title insurance and the big picture of closing costs

Published: 25 May 2017

Lender's and owner's title insurance policies can both contribute to closing fees for property. New owners can therefore sometimes feel a need to cut corners to try and keep their costs down, but that's a risky thing to do when it comes to protecting a title claim. The range of policy costs can make it hard to predict the final sum.

Realtor.com recently described the differing policy standards in states throughout the country, as well as some of the ways buyers can try to keep their expenditures down. Negotiations, special bundles and taking advantage of the lowest local premiums are all some of the strategies included.

It's also important to understand the different elements of closing costs that all have to do with title protections, as Zillow identified in a list. These can consist of the title search, as well as both the lender's policy, which helps validate the transaction, such as the owner's policy, which is more specifically designed to help against suits and claims.

Homeowner and private mortgage insurance, as well as inspection fees for things like insects and the general condition of the home, can all contribute to closing costs. Some of the line items may also influence others, such as the state of the fate of your credit report or survey and underwriting fees needed to complete the approval process and get closer to ownership.

Multiple authorities suggest that closing on property requires a specific tactic for the occasion, not just because of the differences between states but also because of the different policies between lenders. The New York Times recently stated that lenders do, in fact, have to list closing costs leading up to the loan estimate, considering some of the fees and expenses that might also fall under the lender's responsibility.