How Much Does a Title Company Charge for Title Insurance?
Most people looking for a new home to buy tend to ask, how much does a title company charge anyway? If you’re well-informed about the real estate scene, you already know that title insurance is an extremely important factor for a seamless transaction. The costs are, therefore, very important due to the fact that they usually determine the quality of the service that’s being provided and the professional value of the support that the company offers.
Why Do You Need the Support of a Title Company?
So, how much does a title company charge and why do you even need to pay for title insurance in the first place? This is a question that many first time home buyers ask, and it is in fact a very relevant one. Title insurance has to do with making sure that the title you pay for will not be taken away from you based on some sort of legal, financial or tax-related issue. Let’s say you buy a new house and the title is yours. Several weeks later, an heir of the previous owner comes along with a document that proves he is the rightful owner. Since you didn’t have title insurance, not only will you risk losing your brand new home, but you might end up in debt as well. Similar cases have come up all around the country, and real estate agents can usually tell you that title insurance is nothing to joke about.
How Is Title Insurance Paid?
Aside from wondering how much does a title company charge, you should also look into the way in which title insurance payments have to be provided. You typically have to pay for title insurance as a single, one-time payment. On average, it might cost you about $1,000, but it really depends on many factors, as we will soon see. The payment is required to support the cost of the title search as well as any other services the title company might offer. The one-time payment is typically the opposite of how regular homeowner insurance is paid, and for most buyers this is actually a great benefit.
The Factors of Title Insurance Costs
How much does a title company charge and what are the main factors that determine the price? Since in some states the cost is variable and in others it’s fixed, the place you live in is one of the major factors. The company you choose and their reputation is also an important criteria, as is the types of title search services you opt for. Finally, the title insurance cost will always depend on how much your home purchase is worth, even where the state demands a fixed payment.
How Much Should You Expect to Be Charged?
Title insurance expenses can be as low as $200 in some states and as high as $3,000 in others. Location has a lot to do with it, as does the price of your new home. In some cases, you’ll also find that certain companies have specific service packages covering various types of title searches and additional services you might need. While inquiring how much does a title company charge, you’ll find that there are many other questions you should ask as well – such as how much you might have to pay for additional closing and escrow services, and whether a higher insurance cost is actually a good thing or not.