Can a homebuyer or mortgage refinancer actually pay too much buying title insurance? Isn’t title insurance all the same no matter who’s providing it? Won’t my attorney/mortgage banker be looking out for my best interests?
The answers to those questions are a qualified yes, no and hopefully so!
With the Spring buying season now upon us and mortgage rates, while still historically at low levels expected to move higher, homebuyers and mortgage refinancers will be out looking to get deals done!
And whether a first-time homebuyer, a family relocating, a move-up or move-down buyer based on personal circumstances or maybe someone buying a vacation home, there is one constant regardless of the situation…title insurance will (or should) be purchased!
Can a consumer actually get ‘ripped off’ buying a title insurance policy? Well certainly not in the classic form of what we think about when considering a consumer getting taken advantage of. And, in reality, perhaps ‘ripped off’ is too strong a word. Instead let’s substitute ‘potentially paying more than necessary’ for ‘ripped off’. While the premium for the title insurance will be the same no matter which of the TIRSA-affiliated underwriters is used, remember that there are other fees involved in the process.
Isn’t title insurance the same no matter which underwriter is providing the policy or the abstract company I’m working with? That’s like saying that all health insurance is the same, all life insurance is the same or all car insurance is the same!
Doesn’t my attorney/mortgage banker or broker have my best interests at heart? Not being a statistician I would say that they do 99.99% of the time. But to paraphrase what Sy Syms used to famously say, an educated consumer is the best consumer.
And in the same way that 99.99% of mortgage providers and attorney’s are looking out for their clients best interests, so too are 99.99% of title insurance providers.
But, for someone who is entering into what may be the largest financial transaction of their life, it’s most definitely a good idea to do a little research.
So at this point if you’re inspired to read on, the article below will break it all down a little bit further…