As a mortgage lender, you’re probably aware of the importance of accurate title searches in the loan approval process. They provide you with information about who owns the property, what encumbrances exist, and whether there are any liens on the title.
Title searches can also alert you to potential problems, such as pre-existing arrangements or debts, that would impact the closing of the mortgage loan. Keep reading to learn more about the steps involved in a title search and how a reputable title search company can help at each stage, so you can discover all the potential issues before you approve a mortgage request.
Identifying the Property and Locating the Deed
When performing a title search, you first need to find as much information as possible about the property and its current owner. One way to do this is by going through the property’s current and previous deeds, surveys, and official records of ownership.
Though this information can usually be accessed from a local government office, you may not have the time, resources, or expertise to carry out an accurate and thorough title search. This is where a title search company, like Real Title Services, can help you.
We specialize in reviewing the necessary documents and providing you with accurate information, including establishing current and previous owners, the boundaries of the property, and if there are any limitations or liens on the property. We will also provide you with a “title abstract” report which will contain all the necessary information you need to successfully close the deal.
Establishing a Clear Chain of Title
An important part of the title search process is verifying the current and previous property owners, all the way back to the original owner sometimes, establishing a clear chain of title. Properties with a break in the chain of title can pose risks in the future.
This is why you need the expertise of a professional title search company to get a clearer picture of whether there are any gaps or discrepancies in the chain of title, which could potentially impact the current owner’s right to sell the property.
Looking up Tax Records
Tax records can offer a better picture of the property and ensure there are no unpaid or overdue taxes. Unpaid taxes can lead to a lien being placed on the property, which means that the government can put it up for sale at any time. Moreover, tax histories can provide an accurate evaluation of the property’s value over time, helping you determine the property’s current fair market value. The Real Title Services team has the resources and expertise needed to analyze property tax records and verify that there are no liens on the property you’re investing in.
Hire a Professional Title Search Company
Compiling your own title search can be a complicated process. Moreover, mistakes in the title search process can result in expensive losses down the road. By outsourcing your mortgage title search services to a professional title search company, like Real Title Services, you can avoid major pitfalls and save time and money.
Get in touch with us today at 213-212-2161 or contact us via our website to learn more about how we can help you with the title search process.