You’ve spent months looking for your dream home and finding the right mortgage, now all that’s left is the title closing. Unfortunately, the final step in the real estate transaction process is also the most complex, with potential pitfalls that could derail the entire sale. Understanding the most common problems can help you deal with these issues before they arise and ensure a smooth closing.

What You Should Know About the Title Closing Process

Everyone Needs Owner’s Title Insurance

Many home buyers assume that the title insurance policy required will protect their interests if a lien or competing claim is discovered in the future. Unfortunately, these policies only protect the lender’s interest for the life of the loan, and will only cover the outstanding balance. Owner’s title insurance will compensate you for any losses caused by a title defect, including your down payment, mortgage payments, and the value of any improvements you’ve made to the house.

Paperwork Errors Can Have Long-Term Consequences

Most title closing issues are related to paperwork errors, some of which could cause inconvenient delays or even invalidate the contract. Misspelled names, incorrect dates, and other issues may even result in future title defects, so examine each document carefully before signing.

Lenders Don’t Always Release Liens

At some point, most homeowners refinance their loans to cash out equity or take advantage of lower interest rates. Once the new lender pays off the original mortgage, the first lender should release their lien on your property. If you never received a “release of lien” from your original lender, follow up and request a copy before the title closing date.

With over 400 years of combined experience and a long-standing reputation for expertise, First Financial Title Agency of Minnesota, Inc. is one of the premier title closing and escrow companies in the Burnsville and South Metro areas. This attorney-led team of professionals is dedicated to making the title closing as easy and stress-free as possible, with excellent customer service and a wide-ranging knowledge base. Visit them online for more on their background and services, and call (952) 831-5010 to request a quote.