Why does my refinance need Title Insurance?
When you refinance, you still keep your Owner’s Policy from your purchase, but Lenders will require a new title search and Loan Policy to protect their lien holder position in the property.
Even if your home was recently purchased, there are still issues that could arise with the title due to mechanics liens, unpaid judgments, or tax liens. Perhaps easements have recently been created. All of these items may affect the use of the property, or otherwise “encumber” the title.
Whether you are purchasing a new or existing home, or refinancing, title insurance provides an underwriting service to mortgage lenders to ensure the borrower has clear ownership rights to the property, free and clear of any other claims to ownership. Strong underwriting protects consumers, and title insurance fulfills a key part of this due diligence.
Title Security Agency of Arizona is here to assist you and your lender whenever title insurance is needed.