YOU ASK:

What is the role of a title search in a mortgage process?

WE ANSWER:

A title search may be required by the lender when the real estate transaction is about to be closed.

When you need a mortgage to finance the purchase of your new home, the bank will ask you to have a title search conducted. This is part of the closing costs that you carry with regards to a real estate purchase.

What the title search involves would be an investigation of details of the title and the property, such as whether there are questions on the transfers of ownership from one owner to another, as well as the existence of lawsuits, liens and legal claims that may have an impact of the property and its sale.

When a title search is ordered, a title search professional or a team would visit courthouses and surveyor's office to check details of the title. Then, it will process the information. The title search underwriter may also contact your bank and to help the bank formulate the terms of your new loan. Then, the title search underwriter will provide a report on all the information he has culled.

The home loan process also includes the purchase of title insurance and a survey of the property. The purpose of the title search, the title insurance and property survey is to ensure that there are no problems with the property and that the investment or the loan provided by the bank is secure and protected.

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