Title Insurance in NJ – 3 Things to Watch Out For

A title insurance policy in NJ is required to finance a home. To prove ownership, get tax information, investigate liens or easements, title searches can be done. This is an essential, necessary part of the mortgage process. 

Here are three things you need to be aware of:

1. Lender-Recommended Title Companies

Lenders will often recommend a title company they trust. Many lenders have a sister company that provides title insurance in NJ

Image Source: Google

Although this may make the process more straightforward, it might not be in your best interests to choose their company. You should shop around to ensure that your lender and title company do not offer you the lowest possible deal.

2. Closing Fees Inflated

You should make sure to ask the title company about their fees before you sign the HUD-1 statement. This is especially important if the fees you pay are higher than what was in your initial good faith estimate. Title insurance companies in NJ often overcharge for services like document preparation or deed recording.

3. Full price for Quick Refinances

Many title companies will offer a discount if you refinance your loan within the first two years of homeownership. This is because their work will be shorter due to the shorter time between searches. Ask your lender for a recommendation on a title company that offers such a discount.

Consumers are often exploited in the title insurance market due to a lack of knowledge. These ideas will help you to minimize your chances of being exploited.