Title Insurance works like no other insurance. Medical and auto insurance require ongoing monthly payments protecting you from future health issues or auto accidents. Title insurance, on the other hand, protects you from any undiscovered past events which may cause a defect to your title or jeopardize your ownership of a property. The title insurance premium is a one time fee paid at the closing.
The recorded deed is proof of legal ownership and title insurance protects this important investment. There are owner’s title insurance policies and lender’s title insurance policies protecting both the owner and the mortgage holder. Title insurance protects the owner and lender when a property is sold or financed.
Refinancing with Title Insurance
Owner’s title insurance can be purchased at any time but is most commonly purchased when a property changes ownership. If there is a lender involved in the transaction, the lender will require a lender’s title insurance policy to protect their investment.
When refinancing, even if it is the same lender as the loan is paid off, a new lender’s title insurance policy will be required. When refinancing, new liens. judgments or title defects will be searched. When you refinance your home, you obtain a new loan and pay off the existing loan with the proceeds from the new loan. The new lender will require a new title search and a new lender’s title insurance policy. Florida National Title can help write the new lender’s policy when you decide to refinance your home.
The 7 Steps to Refinance Your Home
Step 1 – Get prepared – check your credit, the stronger your credit, the better rate you can get.
Step 2 – Choose a responsible and knowledgeable lender
Step 3 – Make an application for a loan – look at rates and if you should lock or float the rate you choose.
Step 4 – Submit your documents – driver’s license, passport, W2’s and any other paperwork that will help you get approved.
Step 5 – The lender will order an appraisal – an appraiser will take pictures and ascribe a value to your home so the mortgage underwriter has the tools to determine if there is sufficient equity to support the loan amount you require. Your income, other financial obligations, and credit score also are taken into account.
Step 6 – Sign your loan documents – your title company/closing agent will review and return the closing documents to your lender.
Step 7 – Closing – Congratulations!! Everything is in order. Your existing loan has been paid off. Your new mortgage will be recorded in county records.
Florida National Title
Florida National Title has the knowledge and experience to help you protect your property when you purchase it, if you refinance it or when you sell it. Our title specialists can guide you through the process of purchasing an owner’s and a lender’s title insurance policy, as necessary.
Florida National Title has years of experience guiding Florida homebuyers through the real estate purchase and refinance experience and have helped them solve the problems that come up in the process. We will decipher the “legalese” and explain what we need and why we need it each step of the way. The blogs to follow will address specific issues to guide buyers to better understand the process and to help them avoid many of the pitfalls. Call us at (561)408-0729 or visit us at.
Florida National Title Services, LLC
250 S. Central Blvd., Suite 101
Jupiter, Florida 33458
Phone: (561) 408-0729
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