Page 22 - Homeowners Manual - San Antonio, Texas

HOW TO PREPARE FOR YOUR CLOSING

The search may have been long, but you’ve finally found the home of your dreams� You love its style,
floor plan, and views� The neighrborhood looks great� You’ve also done the hard work of reaching an
understanding with the seller on price, signed a purchase agreement, and made an earnest money
deposit� The home inspection went well, your loan has been approved, and your excitement builds as
the big day of closing approaches�

For most of us, the purchase of our home is the single biggest investment we ever make� We certainly
don’t want any last minute problems to threaten the transaction� Please take a moment to review
these points� They will help ensure a successful, trouble-free closing�

Do I need Title Insurance?
Most definitely! Title insurance is a means of protecting yourself from financial loss in the event that
problems develop regarding the rights of ownership to your property� There may be hidden title defects
that even the most careful title search will not reveal� In addition to protection from financial loss, title
insurance pays the cost of defending you against any covered claim�

But the lender already requires title insurance� Won’t that protect me?
Not necessarily� There are two types of title insurance� A Lender’s Policy insures that your lender has
a valid lien on the property� Most lenders require this type of insurance and will typically require the
borrower to pay for it� An Owner’s Policy, on the other hand, protects your interest in the property� Title
troubles, such as improper estate proceedings or pending legal action, could put your equity at serious
risk� If a valid claim is filed, in addition to covering the financial loss up to the face value of the policy,
your owner’s title policy will pay for the cost of legal defense�

Should I shop around for the best title insurance deal?
Some states closely regulate rates� Others permit open competition, which often results in significant
differences in rates and coverage between title insurers� Depending where you live, it pays to
investigate your options carefully in order to obtain the most complete coverage� You also want to
work with a title insurer that responds readily to your needs and performs its complex tasks with great
accuracy� It is vital, too, that you choose a title insurance company with the financial strength and
stability to meet its obligations, through good times and bad, over the long term�

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