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WHAT THE TITLE COMPANY DOES
As a general rule the title company provides the following services:

·Requests a title report and policy
Drafts a deed of trust and/or other necessary documents
Pays off existing loans when necessary
Adjusts taxes and insurance between the buyer and seller
Computers interest on loans
Acquires hazard insurance
Has the buyer and seller sign the documents
Records the appropriate documents
Disburses the documents and month to each party involved
The title company conducts a title search which is a history of who has owned the property and details all prior transactions, existing liens and encumbrances or other factors that affect the title. You receive a Preliminary Title Report on the property which covers all of these items.

The title company also provides title insurance which protects you and the lender against a cloud on title. There are two types of title policies:
1. The Lender's Policy - Protects the lender against loss due to unknown title defects or other matters that affect title and are not known at the time of sale. This policy is mandatory.
2. The Mortgagor's or Buyer's Policy - Protects the buyer from flaws in the title. This policy is optional but his highly recommended.

When your loan is approved and the loan documents are drawn up, they are sent to the title company. Your escrow officer then prepares the papers for you and the seller to sign. At this point, you will be told exactly how much money you will need to bring in on the loan. You will also be required to provide any additional documentation the lender needs. Once both you and the sellers have signed the loan documents, they are returned to the lender who reviews them. If everything is satisfactory, the lender then funds the loan. The title company records the note and deed of trust and escrow is closed.

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