Choosing a Title Company For Your Indianapolis Real Estate Deal

If you are new to the world of Indianapolis real estate, you may have heard of something called title insurance or working with a title company to close on your home but you are not sure what that really means.

Typically, Indianapolis real estate transactions are processed through a title company. In states outside of Indiana, they may also be processed through other means such as an attorney’s office.

So, you have seen a myriad of Indianapolis homes for sale with your Indianapolis REALTOR®, chosen one, made an offer that was accepted and are now embarking on the journey to close on the deal. Fortunately, there are companies that coordinate all the nuances of that closing called a title company.

You may select to trust the decision of choosing a title company to your REALTOR®. Or it is possible that it was negotiated as part of your purchase agreement that the other party will choose where the closing will be held.

If you are choosing the title company, however, here are some key things to keep in mind so you can know more about what you are looking for:

First, know that everything in a transaction is negotiable. Understand this before you submit your purchase agreement and have a discussion about what title company your REALTOR® would like to work with. It is possible that you can request the option of choosing a title company when submitting an offer and then have the control over this part of your deal.

Second, know that the title company’s job is to issue the insurance to protect the title for your home, both to the buyer and lender. Lenders will want this coverage to protect themselves from loss due to claims against your home from others that may be submitted.

Title insurance will be processed through your closing period on your home and is typically linked to escrow services. Supplying a third party who remains neutral, escrow services takes care of the paperwork, funds, instructions for the transaction and various details of a purchase or refinance.

Third, do a little research on what a title company does in general. There are national trade associations, such as the American Land Title Association, that will provide this type of information to consumers, as well as regulatory offices for escrow and title services.

Fourth, just like with any other kind of service, ask for referrals from friends, family and trusted contacts in the real estate industry with whom they have worked to close a transaction successfully.

When asking around, get the names of specific officers they have worked with and not just title companies in general. Look for experience and for a resourceful, dependable personality. Just as you would with a REALTOR®, look for qualities that suggest this person knows how to get things done with finesse because there will be a lot to juggle when closing a deal.

Fifth, as with any service, there will be fees involved so compare these expenditures for individual title companies and see how they stack up. Expect to find many different kinds of fees that will add up. These are typically part of what is referred to as closing costs.

Finally, when working with your mortgage lender, make sure you look at your good faith estimate in detail. This document, which law requires you be provided, will include escrow and title-related fees.

Choosing a title company is important because they will be responsible for coordinating so many parts of your closing. Shop around and don’t be afraid to ask questions to find the right one for you.