Financing and Insurance
Veterans Affairs (VA) Loans
VA loans partially are guaranteed through the U.S. Department of Veterans Affairs (VA). The VA recently expanded its qualifying criteria to include more veterans so all veterans should contact the VA for the most current information at www.homeloans.va.gov.

TITLE INSURANCE
Title insurance is a contract in which the title insurance company, in exchange for a one-time premium at close of escrow, protects against future losses resulting from defects in the title to real property that exist at the time of purchase but are unknown or undisclosed. Title insurance is significantly different from homeowners insurance and other casualty insurance. Homeowners insurance provides protection from losses due to unknown future events such as fire or theft, for a specified period of time (e.g., an annual premium for a year of coverage). Casualty insurance reduces homeowner’s liability should someone be injured on the property.

Title insurance provides protection with a one-time premium for an indefinite period of time from future losses because of events that already have occurred (e.g., claims of ownership). Because of this, title insurers eliminate risks and prevent losses in advance through extensive searches of public records and examination of the title.

There are two types of title insurance policies: owners and lenders. The owner typically will purchase the standard coverage form in the amount of the purchase price of the property. It does not cover increases in value unless you purchase an endorsement, but it covers the buyer’s interest in the property for as long as the buyer and heirs have an interest in the property, subject to certain limitations.

The lender typically will purchase the extended coverage form equal to the mortgage loan. It covers the lender’s interest in the property for the life of the loan and provides additional coverage, such as unrecorded easements and boundary discrepancies, not found in a typical owners policy.

Owners may elect to purchase a homeowners policy of title insurance instead of the standard coverage form. Introduced in the 1990s, this policy includes the standard coverage of a typical owners policy and additional coverage, such as forgery occurring after the policy effective date and increases in the value of the property.

A title insurance policy protects you from financial loss due to covered claims against your title, pays your legal costs if the title insurance company is required to defend your title against covered claims and pays successful claims against your title.

   
1
2
3
4
5
 
Chapters
As one of the largest metropolis areas in ...
Now that you’re relocating to the Los Angeles ...
One of the highest priorities for relocating families ...
Staying healthy is the key to enjoying life. ...
In this chapter, you’ll find information on different ...
The Los Angeles-Long Beach-Santa Ana Metropolitan Statistical Area ...
QUALITY OF LIFE Called the City of Angels and ...
While just the thought of relocating can be ...
Los Angeles is the largest city in California ...
STAYING ORGANIZED BEFORE THE MOVE You’ve just received exciting ...
Buying a House and Making it a Home ...
Purchasing a house is a big decision to ...
Many people relocate to Los Angeles each year ...
HIGH-RISES, MID-RISE, LOFTS AND TOWNHOUSES ABOUND IN THE ...