If you’re buying a home or refinancing your mortgage, your loan application has likely moved to underwriting. But what happens next? One crucial step in the mortgage process is the title search and title insurance. A clear and unencumbered title ensures that the property being financed is free from legal disputes or financial claims that could complicate ownership.

What Is a Title Search?

Before approving a mortgage, lenders require a thorough title search to verify ownership history and uncover any potential issues. This process involves reviewing public records to identify:

• Existing liens or unpaid debts tied to the property
• Judgments or legal claims that could impact ownership
• Any ownership disputes that need resolution

Why Title Verification Matters

The title search confirms that the seller has the legal right to transfer ownership. Without this step, buyers and lenders risk potential legal challenges that could delay or prevent a successful transaction.

Resolving Title Issues Before Closing

If the title search uncovers outstanding liens or legal disputes, these must be resolved before closing. Common solutions include:

• • Paying off existing debts or securing lien releases
  • Addressing ownership disputes through legal channels
  • Correcting errors in property records

Title Insurance: Protecting Your Investment

Most lenders require title insurance to protect against hidden title defects that may not appear in public records. There are two types:

• Lender’s title insurance protects the lender’s financial interest in the property
• Owner’s title insurance protects the buyer from title-related claims or legal challenges

Property Surveys and Title Recording

A property survey may be required to confirm property boundaries and identify encroachments or easements. Once the loan is finalized, the lender records the mortgage deed and other legal documents with the appropriate government office to establish ownership and security interest.

Closing and Post-Closing Title Policy

At closing, the title officially transfers from the seller to the buyer. This process is documented through a deed, and the mortgage interest is recorded to protect the lender’s stake in the property. After closing, the buyer receives a title insurance policy, providing long-term protection against future title issues.

Get Started Today!

At Loan Pronto, we streamline this process through our in-house title agency, Title Pronto. Our integrated approach ensures a faster, more efficient closing experience while maintaining full control over title verification and insurance. Whether you are buying a home or refinancing, our team at Title Pronto works to eliminate delays and protect your investment.

Get started today and experience a seamless mortgage process with Loan Pronto and Title Pronto.

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