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 A title represents official ownership of a property. When you possess the title, you own that property and have full rights to use it. Title insurance protects the owner from claims against the property or defects in the chain of ownership 

 Title insurance protects against losses from title defects, liens against the property and claims of ownership by others. Essentially, it protects against problems that occurred in the past and gives you the “all clear” to purchase and own a property with confidence. 

1. Change Marital Status

How you hold title is affected by your marital status. Be sure to make both your lender and the title company aware of any changes in your marital status so that documents can be prepared correctly

2. Change Jobs

A job change may result in your loan being denied, particularly if you are taking a lower-paying position or moving into a different field. Don’t think you’re safe because you’ve received approval earlier in the process,  as the lender may call your employer to re-verify your employment just prior to funding the loan.

3. SWITCH BANKS OR MOVE YOUR MONEY TO ANOTHER INSTITUTION

After the lender has verified your funds at one or more institutions, the money should remain there until needed for the purchase.   

4. PAYING OFF EXISTING ACCOUNTS UNLESS YOUR LENDER REQUESTS IT

If your Loan Officer advises you to pay off certain bills in order to qualify for the loan, follow that advice. Otherwise, leave your accounts as they are until your escrow closes. 

5. MAKE ANY LARGE PURCHASES

A major purchase that requires a withdrawal from your verified funds or increases your debt can result in your not qualifying for the loan. A lender may check your credit or re-verify funds at the last minute, so avoid purchases that could impact your loan approval.

 The owner’s policy purchased by the seller is usually in effect for as long as you own the property. The lender’s policy purchased by a buyer expires when the mortgage is paid off. Consult your specific title insurance policy, as these guidelines may not be true in all cases. 

 Lenders require new title insurance at the time of refinancing. If you’re ready to refinance, contact Title Ally directly, as we can often offer lower costs than purchasing title insurance through your lender. 

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