Rental Property Investor · Houston, TX · Member since 2021 · 19 posts · 0 votes
Hi all,
I am in the process of getting a mortgage loan and I have a question about Title insurance.
In the executed contract the seller agreed to buy the Owner’s title insurance. The title company released that it would cost of $2,387.
I am working with a lender and see that they are charging me $2,229 for the Lender’s Title Insurance on the Loan Estimate.
Can I somehow take advantage of the “simultaneous issue rate” to decrease the price of the Lender’s Title Insurance even though the seller is the one paying of the owner’s title policy?
Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
4y
Seller usually picks title company unless you wrote it in your contract otherwise. All title companies price the same, they are regulated. Owner's policy is one time fee based on sale price covers you as long as you stay on title (owners title policy is higher). Lender's policy is based on loan amount, it covers the lender. These are different policies. Answer no. All the and and ins and outs will cost as well (tie in, notary, endorsements, yadda yadda and a) - the escrow or attorney chosen can vary by thousands of dollars.
Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
4y
Seller usually picks title company unless you wrote it in your contract otherwise. All title companies price the same, they are regulated. Owner's policy is one time fee based on sale price covers you as long as you stay on title (owners title policy is higher). Lender's policy is based on loan amount, it covers the lender. These are different policies. Answer no. All the and and ins and outs will cost as well (tie in, notary, endorsements, yadda yadda and a) - the escrow or attorney chosen can vary by thousands of dollars.
Specialist · Winter Springs, FL · Member since 2009 · 1k+ posts · 747 votes
4y
Texas seems to have a promulgated issue rate for a simultaneously issued loan policy as long as you meet the requirements. This of course is the premium for the policy. As posted above there may be some related charges.
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
4y
In this case it sounds like seller is picking up the cost of the owner's title police.
You pay for the lender's coverage.
My guess is your lender hasn't seen the contract or if they have they haven't updated their estimate. They do that to be safe with you and not surprise you with fees later on. Better to overestimate for them, vs surprise you with an extra $2200 you didn't plan for. Several other items in your estimate could be like this too.....who pays for the survey, estimated taxes, etc.
Investor · Corpus Christi, TX · Member since 2012 · 2k+ posts · 1k+ votes
4y
When an OTP and MTP are purchased at the same time, the lender's policy in Texas is $100 plus endorsements. The mortgagee's title policy that you'll pay for should be in the neighborhood of $350 (or less) with endorsements.
Rental Property Investor · Houston, TX · Member since 2021 · 19 posts · 0 votes
4y
@Bruce Lynn I’m due to close tomorrow, and that’s exactly what happened . They updated all the numbers and waived what was already paid for by the seller. Thank you!