Lender’s title insurance is required for home purchases with a mortgage, but owner’s title insurance is always optional. When making an all-cash home purchase, NH title insurance is even more important. Here’s why.
Higher Equity in Cash Purchases
When buying a home with cash, there’s no lender money at stake. It’s all equity and all your own money. With so much invested, it is critical to protect your financial interest against any unknown defects in the title. Lenders always want a policy to protect what they are loaning to you, so clearly, they find it important to have such coverage. Your money is equally, if not more, essential to protect.
Risk of Not Having Title Insurance for Cash Purchases
The risk of not having NH title insurance for cash purchases will vary. Since defects/issues are initially unknown, it is also impossible to predict how severe an issue might be. Minor defects may require some leg work to track down information or locate previous owners to sign certain documents. Major defects could involve law suits, attorney fees, courts fees, etc. Major title issues could jeopardize your ownership rights in the property and therefore your entire investment.
Cost of NH Title Insurance
NH Title Insurance fees depend on the amount being insured. Therefore, a title insurance policy for $300,000 home would be less than an $800,000 home. Use our GFE calculator to receive a free estimate. The value of your investment will always outweigh the comparatively small one-time fee for NH title insurance.