When buying or refinancing a property, a preliminary title report is a crucial step in the process.
This document, also known as a “prelim,” is prepared by a title company and outlines the condition of the title to a specific property. In this post, we’ll explain what a preliminary title report is, why it’s important, and what information it includes.
Liens and Encumbrances are Discovered
A preliminary title report is a comprehensive document that provides information about the legal ownership of a property, as well as any outstanding liens or encumbrances that may affect the property.
This can include things like mortgages, judgments, and tax liens. The report also identifies any parties who may have an interest in the property, such as heirs or beneficiaries, and any restrictions or easements that may affect the property.
Don’t Buy Without One
One of the main reasons a preliminary title report is so important is that it helps identify and resolve any issues related to the title before closing on a property.
This can include resolving outstanding liens or encumbrances, or identifying any potential legal issues that may affect the property.
By identifying these issues early on, a preliminary title report can help ensure a smooth closing process and prevent any unexpected surprises down the road.
Lenders need it to meet investor guidelines
In addition, a preliminary title report is typically required by the lender as part of the loan process. This is because the lender wants to ensure that the property being used as collateral for the loan has a clear and marketable title.
Without a preliminary title report, the lender may not be able to approve the loan, which could delay or even prevent the sale or refinance of the property.
In conclusion, a preliminary title report is an essential step in the process of buying or refinancing a property.
It provides important information about the condition of the title and can help identify and resolve any issues related to the title before closing. Make sure to work with a reputable title company like Amrock to ensure that your preliminary title report is accurate and comprehensive.
By understanding the importance of a preliminary title report, you can help ensure a smooth and successful transaction.
“SELFi started with a simple idea: to help homeowners obtain the lowest interest rates on their mortgage. That’s it.”
Compare wholesale mortgage rates easily using AccuRate.
Subscribe to our mailing list
Stay up-to-date on interest rates, loan options, and money saving tips.