With regulations constantly changing, it can be hard for mortgage lenders to keep up with the changes. In addition, there are several other things that can go wrong and interfere with the loan closing process, especially with respect to title searches.
However, outsourcing your title search to a professional title search company, like Real Title Services, can help lenders avoid crucial errors and save time and money. A title search company can provide the needed information in order to help banks and lenders review the title chain to ensure a smooth closing of the loan. Keep reading to learn more about how third-party mortgage title service companies can help make the lending process easier.
Researching and Ordering Title
Based on the lender’s requirements, a title search company can conduct title searches within a specific city or area. Apart from confirming the property’s rightful legal owner, a title search will also shed light on the boundaries of the property and if there are any restrictions on it. This information is especially important if you’re planning on developing the property later.
After the title search is done, the title search company will provide your title insurance company with a “title abstract” report, otherwise called a “title search.” In most counties, a title search is required to close on a property. So your title insurance company will hire a company like Real Title Services to perform arguably the most important part of the title insurance process.
Fixing Any Errors in the Title
A title search will be used by your title insurer to reveal any errors in the legal description of the property, which can cause problems later on in the transaction if left uncorrected. A reputable title search company will provide this title search to a title insurance company, and the tile insurance company will get started on fixing any errors they find to ensure that that home is not owned by third-party, and that everything is on track for closing the deal.
Creating a Commitment Report
A commitment report details information about the title insurance and the circumstances that led to the title commitment phase. This phase is when all the errors and anomalies found in the title are fixed, which in turn ensures a smooth closing process for the lender.
As the entire title search process can be quite complicated, an experienced title search team—title searcher and title insurer—will be able to make sure that all regulations are met. The accuracy of title search process will provide lenders the security to make the loan.
The Closing Stage
As mentioned above, a title team will be able to ensure that the entire loan process is smooth—and this includes the closing stage. Once everything is finalized and the borrower is ready to seal the deal, the title insurance company will make sure to review all the necessary documents and finalize the deed and title exchange as per the state laws.
Recording of Mortgage
At the end of the whole process, the title insurance company will send the mortgage to the local records office, where the county authorities will make a note of all the information.
As seen above, hiring a reliable title search company like Real Title Services can make things so much easier for lenders. So if you are a lender, a title insurance agent, a real estate investor, or a concerned homeowner get in touch with us today at (213) 375-1726 or contact us via our website to get started!