The real estate agent, or attorney, will order a title report, you don’t want to buy the Brooklyn Bridge. In other words, you want to be sure that
the seller(s) of the home actually own the home, and you want to know what mortgages and other loans are secured by the home, and whether there are any liens on the property that will have to be
satisfied at the closing by the seller.
Lender’s title insurance covers contingencies regarding who owns the home and possible outstanding liens on the home; your real estate agent, or
attorney, will advise you what is required. Don’t forget, for a one time fee, there’s also title insurance for owners to protect against challenges to the title.
lender will typically require that you carry home owner’s insurance to be sure that the value of the home is preserved should a disaster occur.
Flood insurance may be required in certain
cases where the home is located in an area prone to flooding. Earthquake insurance may also be required in areas prone to these occurrences.
If your down payment is a small percentage of the
loan (often less than 20%), your lender may require Private Mortgage Insurance.
To be sure that there are no lot line disputes, or zoning non-compliance issues, the mortgage lender may also
require a survey on the property, if a current survey does not exist.