There are two types of title insurance: owner's coverage and lender's coverage. Lender's protection protects the lender in case their interest in the property becomes subject to unpaid liens, encumbrances, or challenges to the title. Most mortgage loans require lender coverage.
Optional owner's insurance on the title is available. The owner's insurance is the most affordable type of insurance that a buyer can purchase. The buyer is protected for the life of the property. The best title insurance company in NJ will protect the buyer's rights if someone challenges them if they have not been paid before closing.
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Buyers may be tempted to forgo purchasing the title portion of the owner's property at closing to save hundreds. A loan officer or agent may encourage buyers to forgo this important one-time payment insurance.
Many title insurance companies offer simultaneous issue options. A buyer who purchases the insurance the day before closing will be eligible for a discount on the lender’s policy.
Buyers should ask their closing agent or attorney about the concurrent issue rate for the title company through which they have written their policies. Remember that the buyer must pay the entire premium if the owner decides to stop buying the coverage.
Reissue rates are also offered by title insurance companies for refinances. Reissue rates let borrowers pay for coverage based on the difference in the current loan amount and the value of their original lender's policy.