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     When you plan to purchase a property, take into consideration the most vital factor in the home buying process—the title insurance. It is necessary for you to know what it is all about and how it works in your home buying.

     The title insurance as a guarantee for a good and marketable real estate title has surpassed the use of abstract title before. Before the use of title insurance, a record called abstract proves ownership of a property. In it, the only guarantor of its accuracy is a person, not necessarily a lawyer who makes them. Later on, majority of lenders decided they need more security, which began the use of the title insurance and has become very popular nowadays.

     This kind of insurance operates just like any other insurance policy, but provides more security for the buyer and the mortgage lender than the abstract. There are several title insurance forms but the most common is for the lender and the property owner. The lender policy is normally the amount of mortgage while the property owner policy is the price of the property.

Find out more about the title insurance below:

1. The insurance for the mortgage lender guarantees that the home they are extending a loan is free from liens that may take priority over the bank lien. The company ensures that the lender has a lien position on the property.

2. The insurance cost is related to the purchase price of the house where the policy is written. The higher the price, the more it will cost because of the risks assumed by the title company.

3. If problems occur, the company writing the title insurance will investigate. It works like any other insurance policy where the policy owner files a claim, and then the company will investigate and then reviews them and follow a course of action on the claim.

4. The risks covered by the title company involves the following:  survey irregularities, forced removal of current structures, claims due to fraud, forgery, unregistered easements and rights-of-way, lack of pedestrian or vehicle access to the property, zoning or set back non-compliance of deficiencies. For a risk to be covered, it has to be in existence on the date of the policy. There are also risks that are not covered, such as native land claims and environmental hazards.

5. For a homebuyer, the coverage of the title insurance will remain in effect as long as the insured has the property title. Some policies cover recipients of the property title due to the death of the purchaser, or members of the family whom the property is transferred.

6. A policy that covers a lender remains in effect so long as the mortgage remains on the property title. The title insurance insures the lender in the event that it suffers damage or loss in respect to a risk covered by the policy. The amount of coverage is usually up to the principal loan amount.

7. The premium is paid only once upon purchase. Some policies automatically cover both lender and buyer and some cover both for an additional fee.

8. The title insurance helps ensure on time closing date. In case an issue arises, concerning the title, the company will cover the fees and legal expenses incurred in case of loss.

Investors tell us continually that finding financing for Commercial projects such as Apartment Buildings, Mobile Home Parks in today’s market is challenging. “Finding the money to buy , build or refinance property” is an investor’s #1 challenge. The money hurdle keeps investors from making bigger profits and prevents one from amassing a fortune in real estate.The good news: The money is still there. It is simply harder and more time-consuming for one to find appropriate financing today than before.The recent financial upheaval has wiped out financial banks and institutions by the dozen. Institutions including Countrywide, Wachovia, Washington Mutual, Lehman Brothers, World Savings, Indymac Bank, IMPAC, EverBank, LaSalle Bank and Column Financial have either stopped lending or scaled their lending operations dramatically back. These financial conduits have been a major source of commercial financing for a very long time. Everyone had come to depend upon the services these money-people were able to provide. For the would-be investor knowing where to “find the money” would seem to be critically important. The good news is commercial financing is still available if you know where to look.Clients may be broken down into two groups, Group A and Group B. Group A displays an almost intuitive understanding of the role Mortgage Brokers play in assisting in the building of their real estate portfolios.Group B is property oriented. Totally Property Oriented. By not focusing on financing first, this type of investor plays a dangerous game.The Group A type of Investor upon first considering a property, will pick up the telephone and call his Mortgage Broker (hopefully, one with whom the investor has developed a long-term association built upon trust and confidence). Why would the investor waste time calling his Broker? Maybe the investor is lonely and would like to speak with someone?Or maybe the investor makes the call because the investor needs to know what the cost of money is. The investor may readily view and understand the condition, location and attributes of any property in question. But what about the cost and terms of the money one will need?Not only will the Broker understand whether the property will Debt-Service, but also, where the surviving lenders are. A good Broker should be able to advise what type of financing is available, the amount of down-payment necessary, where the funds will come from, the cost of the funds and what the ROI (return on investment) the investor may expect.The challenge for you as an investor is to be ready and prepared for the investment property when the situation materializes. If you are from the Group B Investor School, you would call this luck. If one is in Group A, one believes the marriage of good investment property with good financing is planning and preparation.As an investor, please Think Money First. Factor in the cost of an investment property with the cost of money. Develop a strong-on-going Professional association with a Broker. By taking these small steps investors may put themselves in position to accomplish the following:1. You, the investor, will become more aggressive in searching for investment properties.2. You, the investor, are now more confident. This confidence leads to bigger deals, more profit.3. A confident investor seeks properties yielding greater returns.4. Financing Power breeds confidence.5. Sleep at night, take naps during the day. Why Not? One’s good financing is doing all of the work.