This is one of those simple steps that can save you hundreds of dollars, yet it often gets overlooked. Most buyers, especially first-time buyers, don’t even know this option exists because nobody tells them. Unfortunately, many real estate agents and lenders just send you to “their favorite title company” without thinking about your money. But you have to look out for yourself!
Here’s how it works:
Ask for a copy of the current title policy from the seller.
- If the seller bought the house in the last 3–5 years or recently refinanced, there’s a good chance there’s an active title policy still in force.
- Many title companies will offer what’s called a “title update” in these situations instead of doing a full new search and issuing a brand-new policy.
Why is that important?
- An update is usually much cheaper than a brand-new policy.
- But here’s the catch: It can only be done by the title company that issued the current policy.
- So, if you skip this step and just go with whatever company your agent recommends, you’ll miss out on the huge savings an update can provide.
Strong Warning: Don’t Skip This!
Most buyers never think to ask for the current title policy or check if an update is possible. That’s why we’re sharing this tip to save you money and help you avoid unnecessary costs.
- Ask for the current title policy.
- Call that company and see if an update is available.
- Save hundreds of dollars if it is!
Want to Learn More?
We have an entire House Karma educational section dedicated to Title Insurance and Escrow, with everything you need to know to make the right decision and avoid overpaying. If you’re buying a home, take a few minutes to read it. Trust us, knowing the right questions to ask can save you thousands and give you peace of mind.
At House Karma, we’re always looking for ways to save you money and protect your interests. If you have questions about title insurance, escrow, or any part of buying your home, just ask! We’re here to help you make smart decisions and avoid expensive mistakes.
