One of the most important aspects of real estate transactions is ensuring that the property you are buying or selling has a clean title – free of any judgments, liens, or claims that could affect your ownership or investment. Title insurance is designed to protect property buyers and lenders against any title defects that may arise later. To help you understand your title insurance costs and coverage, First American has created a user-friendly title insurance calculator that gives you instant quotes and customized options based on your state, property type, and purchase price.
What is First American’s Title Insurance Calculator?
First American’s Title Insurance Calculator is an online tool that allows you to estimate the cost of title insurance for your real estate transaction. By providing some basic information about your property and transaction, such as the state and county where the property is located, the purchase price and loan amount, and the type of transaction (purchase, refinance, or construction), you can receive an accurate quote that reflects your specific needs and risks. You can also choose from a variety of options, such as lender’s coverage, owner’s coverage, and endorsements, to tailor your coverage to your requirements and budget.
How Does First American’s Title Insurance Calculator Work?
To use First American’s Title Insurance Calculator, you need to open the calculator page on the First American website and follow the prompts. The calculator will ask you to enter the following information:
Field |
Description |
|---|---|
State |
The state where the property is located. |
County |
The county where the property is located. |
Purchase Price |
The total price you are paying for the property. |
Loan Amount |
The amount of the loan you are taking out. |
Transaction Type |
Whether you are buying, refinancing, or building the property. |
Coverage Type |
Whether you want lender’s coverage, owner’s coverage, or both. |
Endorsements |
Any additional endorsements you want to add to your policy. |
Once you have entered this information, the calculator will generate an estimate of your title insurance costs, broken down into several categories:
Category |
Description |
|---|---|
Title Insurance Premium |
The cost of your title insurance policy, based on your purchase price and coverage type. |
Endorsements |
The cost of any additional endorsements you have selected. |
Recording Fees |
The fees charged by the local government to record your mortgage and title documents. |
Tax Stamps/Taxes |
The taxes and fees associated with your mortgage and property transfer. |
Other Fees |
Any other fees or charges required by your lender or state. |
Total Costs |
The total estimated costs of your real estate transaction. |
Why Use First American’s Title Insurance Calculator?
Using First American’s Title Insurance Calculator can help you make more informed decisions about your real estate transaction by:
- Providing transparency: By giving you a detailed breakdown of your title and closing costs, the calculator helps you understand the various components of your transaction and how they affect your bottom line.
- Saving time: Rather than having to manually calculate your costs or rely on estimates from third-party providers, the calculator gives you an instant, accurate quote that you can use to compare different options and scenarios.
- Customizing your coverage: By allowing you to select the type and level of coverage that best suits your needs, the calculator helps you tailor your policy to your specific risks and preferences.
- Supporting your lender: By ensuring that you have the required title insurance coverage, the calculator helps you meet your lender’s requirements and avoid delays or complications in your closing.
Frequently Asked Questions
How accurate is First American’s Title Insurance Calculator?
First American’s Title Insurance Calculator is very accurate, as it is based on First American’s proprietary databases and algorithms that reflect the latest title insurance rates and regulations in your state. However, the calculator can only provide estimates, and your actual costs may vary based on specific factors such as property location, title issues, and lender requirements. That’s why it’s important to review your quote with a qualified title or closing agent to ensure that you have a full understanding of your costs and coverage.
What is the difference between lender’s coverage and owner’s coverage?
Lender’s coverage, also known as loan policy, is a type of title insurance that protects your lender’s interest in your property. It typically covers the amount of your mortgage loan and lasts until the loan is paid off or refinanced. Owner’s coverage, also known as owner’s policy, is a type of title insurance that protects your ownership interest in your property. It typically covers the purchase price of the property and lasts as long as you or your heirs have an interest in the property. Both types of coverage are usually required by lenders and recommended for buyers to protect against title defects such as liens, encumbrances, or errors.
What are title insurance endorsements?
Title insurance endorsements are optional coverages that can be added to your title insurance policy to provide additional protection or to waive certain exclusions or limitations. Endorsements can vary by state and by insurer, but some common endorsements include zoning, survey, access, environmental, and inflation coverage. Endorsements may involve additional fees or underwriting requirements, so it’s important to discuss them with your title or closing agent before purchasing.
What is the role of a title or closing agent?
A title or closing agent is a licensed professional who handles the title and closing process for your real estate transaction. The agent typically conducts a title search, issues a title insurance policy, prepares or reviews the closing documents, and coordinates the transfer of funds and ownership. The agent may be appointed by the buyer, seller, or lender, depending on the state and the terms of the transaction. It’s important to choose a reputable and experienced agent who can guide you through the process and answer your questions.
How can I purchase First American’s title insurance policy?
To purchase a First American title insurance policy, you can either get a quote online through the Title Insurance Calculator and submit your application electronically, or you can contact a local First American office or agent to request assistance. First American offers a range of title insurance products and services to meet your needs, including residential, commercial, builder, and lender policies. You can also request additional information, resources, or support from First American’s customer service or claims departments.