What a Title Company Can Do for Your Home Buying Experience
Posted on: 20 December 2016
A title company is a type of real estate closing company who acts as your middleman between you and your seller (or buyer, if you are the one selling) and makes sure payments are sent and recorded properly. What makes a title company different is that it can assist in drafting up contracts and agreements between the buyer and seller, much like a loan company does, but they do not report payments to credit agencies and often don't handle escrow (home insurance and other necessities) as part of the payment plan. Here are things a title company can do for you as you buy a home from a motivated seller.
Create a payment plan since you don't have a loan
The payment agreement you come to is not between you and your title company, it's between you and the seller of your home. Since a title company is not a loan service, all the payments you make go straight to the seller, including the agreed-upon down payment. The only thing the title company takes from your payment is the interest rate, which they determine based on the length of your mortgage and the cost of your home. You can breathe easy knowing that you have more freedom with your payments since you are not obtaining a loan.
Keep legal tracking of payments
Title companies play the role of the mediator between a huge financial agreement of two parties. This means all your payments go through them first, and the buyer and seller are both obligated to read and sign off on a contract as to who is responsible for what in the purchase of a home. This is great news for you if at any time your seller decides to change their mind or tries to claim you are not making payments, your title company can show records that you not only have been paying for your home regularly but that the seller cannot back out of the contract.
You will quickly find out that a title company is an excellent choice when you are purchasing (or selling) a home with 'for sale by owner' conditions. With no loan company in the way of finances, you can get into a home legally and financially secure with a title company protecting both you and the seller. Make sure you have a large down payment ready to place on your new home that you and your seller can be happy with.
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