Why does a title company need to be involved in a refinance?

This is a great question that we're frequently asked. In fact you may be thinking things like:

  • "If I'm only dealing with a bank to refinance my mortgage, why does a title company need to be involved?"
  • "What are all of these additional title fees?"
  • "Is this just another way for the bank to add in junk fees to swindle me out of my cash?"
  • "Why do I need to purchase a new title insurance policy on a refinanced loan?"

Are you the legal owner?

The reason why banks hire title companies is because they want to be sure that you (the loan applicant) legally own the property. The bank (also known as the lender) obtains this information from the title company, who thoroughly researches the subject property (i.e. single family home, duplex, condo, commercial building) to ensure you are its rightful owner.

Are there problems with the title since you purchased the property?

The lender's main concern is whether or not there are any problems with the title since you first purchased the subject property. For example, let's say that you purchased a house with clear title 3 years ago. Two years ago, you were taken to court (for whatever reason) and a judgment is filed on your house. Before being able to refinance your mortgage, the lender may require that the judgment be paid first.

So although you may not be happy about paying these additional fees, we assure you that we're on your team and we'll do our best to ensure that the process is seamless as possible. Oh and don't forget to give us a copy of your Owner's title insurance policy. You may be eligible for a discount!

Call 239.985.4142 or contact us for a FREE Title Insurance Request today!

Serving Fort Myers, Cape Coral and Naples, Florida.

Winged Foot Tite, LLC is not associated with the government, and our [short sale orchestration] service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.