Compass Title & Closing, offers Lender's Policies for any type of financing. We help you make sure your loan is secure for your next transaction.
A refinance transaction requires a Lenders Title Insurance Policy.
A lender’s title insurance policy is typically required by each bank, lender or credit union to ensure that the loan is marketable or transferable to an agency such as Fannie Mae, Freddie Mac, the Department of HUD or the Department of Veterans Affairs. A title insurance policy also ensures that the lender has a first lien or priority on the property in relation to their debt, subject to a few exceptions which will be sited on the policy at time of commitment delivery
Refinancing your home and making sure all liens are discharged, paid in full and processing and recording your new mortgage, riders and other applicable documents, are all part of the process. Most lenders require mortgagee title insurance as security for their investment in real estate, just as they may call for fire insurance and other types of coverage as investor protection. When title insurance is provided, lenders are willing to make mortgage money available in distant locales where they know little about the market.
Things you should have ready when refinancing your home: