This blog post was published by Chis O’Shea from SavvyMoney Hub with commenting by Wendy Hoekstra, Vice President – Retail Lending from First Community Bank and Trust.

What you should know about title insurance companies.

People buy and sell houses all the time. Yet how many of those people understand what the title is and what a title insurance company does? Titles are a big part of buying or selling a home. Here’s what you should know.

Title Company Basics

A title insurance company is an independent company — with no connection to your mortgage lender, real estate agent, buyer, or seller (as long as there is no affiliation) — that ensures the transfer of title ownership from the seller to the buyer. These companies search for the proper title to a house, conduct property surveys, oversee closings, extend title insurance, and hold escrow funds. Title companies typically charge an average of $1,000 for their services.

What a Title Company Does

A title company ensures no issues prevent the buyer from becoming the legal owner of the home. Examples of “issues” include potential heirs, unpaid taxes, previous mortgages, liens, fraud, and more. Title companies also offer title insurance.

What Title Insurance Covers

Title insurance is just like it sounds, it protects the buyer against any future claims against the property. There are two types of title insurance, and both cost about $1,000 each, depending on the state.

• Lender title insurance. This is required by mortgage companies. It protects the lender against anything title-related that might impact the lender’s lien.
• Owner title insurance. This is not typically required but protects the owner against any title-related issues.

Do One Thing: If buying a home, consider whether you should purchase both types of title insurance. It can be a relatively inexpensive price to pay to cover yourself against issues with owning your home. And, the owner’s title insurance is often a fee paid by the seller.

About First Community Bank and Trust
First Community Bank and Trust is a privately-owned bank. Established in 1916 First Community Bank and Trust has been serving Beecher, IL, Peotone, IL and the surrounding communities for over 108 years. Our commitment to providing the best banking products and services is matched only by our outstanding customer service. We offer traditional community banking services, including mortgage, consumer, and commercial lending, as well as state of the art electronic banking services.

Press Contact:
Steve Koehn, Senior Vice President
First Community Bank and Trust
(708) 946-2246

###