Steps to Get Title Insurance
Congratulations! You have found your new home, put the offer in, and are *patiently* waiting for all the paperwork and steps to be done. However, before you get that brand new set of house keys, did you purchase title insurance? There is no better way to ensure that the property is truly yours than by considering adding on title insurance through the settlement process.
Yes, your lender and realtor work hard to get you in your home ASAP. But the title company also works diligently behind the scenes to ensure that your new home is going to officially be yours. And with no outstanding legal strings attached.
There are how many steps to get title insurance?
To put it plainly, there are a lot of steps. Follow along as we dissect the steps to get title insurance from start to finish!
Obtain a signed sales agreement
One of the first steps to get title insurance is to acquire a signed sales agreement. You can either do this via the title company of choice or through your realtor.
Submit the agreement to the title company
Once you have obtained and signed the sales agreement, the next step is to submit that agreement to the title company. The title company will then go on to their vigorous search process.
Title company orders the following:
- Social security numbers to run Domestic Relations Search
- Marital Statuses for deed purposes
- Information on the property, if applicable
- Water/sewer company
- Current mortgage info
- HOA/Condo info
- Rent info
- Security deposit
- Rent amounts
- Email, phone, etc. to be able to contact the parties for additional information
Searcher submits the search to the title company
Once all the steps to get title insurance in the information above is complete, the title company receives the results from the searcher.
Title company conducts legal reviews
The title company will then conduct legal reviews on a few things. These reviews include the chain of title, current mortgage, current deed, and any other information submitted to title company by the searcher to ensure no issues show.
Title company types up legal description
They will also set their files up to reflect the current property owner information.
Title company prepares the needed documents for the lender, if applicable
- Pre CD
- Wiring Instructions
If it is an all-cash deal, then see the next step.
Title company prepares the Commitment
Once the Commitment is prepared, they send it out to all parties involved (agents, buyers, sellers, attorneys).
Title company waits for lender
This is applicable only if a lender is needed. The lender will then give the title company the clear to close. The title company will schedule the closing and update the prorations to begin balancing the CD.
Title company and lender work together
These two companies balance the figures together and then reach a cash-to-close figure.
Title company sends the settlement statement out to all parties involved
This statement discloses the amount that the buyer needs to provide at closing. Title companies like Madison Settlements accept cashier checks or a wire transfer. The lender will then send the closing package to the title company for settlement.
Title company prints and prepares the closing package for settlement
This step is self-explanatory. Get ready to initial and sign away!
Funding coordinator disburses funds on the day of closing
Again, another self-explanatory step in the steps to get title insurance process from start to finish.
Closer gets file to go to the table and meet with whomever attends closing
They will then go over everything as well as collect and distribute all needed funds.
Post-closer scans everything
And will submit any funding requirements. The Post-closer will also then send recordable docs to the county (where property is being purchased). Then the county will send the recorded docs back to the title company.
The last step
Title company inputs all the new recording information and generates the owner’s policy. The company also mails the policy and original deed to the owner and the recorded mortgage, if applicable, to the lender.
And there you have it
As you can see, the steps to get title insurance from start to finish is quite the process. But it is a process that will protect you and your largest investment (your home) for the entire length of time you own your home.