How Does a Title Company Make Money?

When looking to buy a home, you’re going to have to work with a title company, otherwise you could find yourself subject to a title search in the future. At Armour Title, we’ve been providing the good people of Texas with our title services for years, and wanted to take some time today to talk about how exactly title companies make money.

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Title Companies Have Different Charges

There are several different ways title companies make money. One of the primary ways is by performing title searches- . A title search will protect you against any unpaid mortgages or tax liens on your home. Another way title companies make money is by selling title insurance to lending institutions and homebuyers. Typically, the buyer will pay for the title insurance of their lender, and the seller will pay for the title insurance premium for their buyer.

How Do Title Companies Work?

Title companies offer a number of different services. They’ll check to see if there are any legal claims on a property, and will also provide you with insurance, protecting against any future claims. This insurance will protect both parties’ financial interests into the future.

Who Pays The Title Fees at Closing?

In most cases, the homeowner will pay for the buyer’s title insurance fees, though this can change from case to case. Usually, the buyer will pay the title insurance premium for their lender. All of these fees can be lumped together under the broader term, the “closing process”.

How Can I Avoid Paying Closing Costs?

There is no sure-fire way to get out of paying closing costs, and instead this is a matter that is best negotiated on a case by case basis. If we’re in a buyer’s market, then you may be able to negotiate that the seller pays for at least some of the closing costs. You could also try to negotiate some of these costs with your lender.

Get Help From an Experienced Title Company in Texas

Looking to save on title costs? At Armour Title, we’ve been saving people money in the Lone Star State for years, and plan on doing so for more. If you’re looking for some help, get into contact with us, and speak to our team of knowledgeable and experienced Texas title insurance agents.