Title insurance is a type of insurance that protects owners and lenders against property loss or damages that might arise because of liens, encumbrances, or defects in the public record to the title of a property, subject to specific terms, conditions and exclusions of coverage. Title insurance is paid at settlement through a one-time fee. There is no reoccurring fee like other insurances.

Generally, there are two types of title insurance, an Owner’s Policy which protects the buyer’s interest in the property and a Lender’s Policy which protects the lender’s interest in the property.

A Closing Disclosure is a five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs).

“Escrow” is a term that describes the neutral third-party handling of funds, documents, and tasks specific to the closing (or settlement, as it is also known), as outlined on the real estate purchase agreement or sales contract. The purpose of escrow is to facilitate the transaction by managing the disbursement of funds and documents.

Three days before your closing date, you will receive your Closing Disclosure. This document will provide the final details of the loan and closing costs you agreed to pay. This should be reviewed along with the loan estimate provided by your lender to make sure that there are no large variations from the cost your lender initially disclosed.

Closings usually take place at the office of the title company, the real estate agent’s office, your lender’s branch or your home.

You will need to bring a VALID state-issued photo ID or Passport.

You will need to bring a cashier’s check or wire transfer to pay for outstanding escrow items or closing costs that are not rolled into the loan.

At the closing you will review and sign a handful of documents at closing, including Deeds, Mortgages, loan documents and affidavits from the title company.