Profile picture for lovingcare

why do lender charge title fee? Does it necessary for lender to charge?


  • August 23 2012 - Covina
  • 0Yes

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Answers (2)

Profile picture for David Rudd
Lender's require title policy coverage to insure that they minimize or negate any possible loss due the invalidity of the lien they are placing on your property when you procure a mortgage loan.  

They look to make sure that their is a "clean" title and that they will be the correct lien holder and in the correct priority position on the title of you home.

I am not aware of a lender that will give you a mortgage without title insurance.

Hope this helps
  • August 25 2012
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The lenders trys to prevent the problem (if any) in the future even if you are refinancing with same lender, since your note will be sold to the 3rd party investor, which may not to be same with the previously 3rd party investor.

  • August 23 2012
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