Title companies also sell title insurance. This is insurance to protect the lender (and, optionally, the borrower) against problems associated with the properties title. Examples of this include illegal transfers (forged signatures) and unpaid taxes or liens.

Most real estate mortgage brokers, agents and loan consultants will have existing relationships with title company representatives that will have reputable service and fast turn times.

It is best to let your loan officer pick the title company.

At the onset of a real estate transaction, a preliminary title search is performed to determine any outstanding liens against the subject (purchase or refinance) property.

The title company makes sure that the deed, mortgages and satisfactions get recorded at the Register of Deeds.

The title company will also prepare the final documents for closing and provide the final closing service for all parties involved.

The title company will also arrange various disbursements of funds. For example, if credit cards are to be paid off at closing, the title company will handle the payoffs.

As is the case with most title companies, the closer is also the notary for your new loan. They will stamp the necessary paperwork and make sure that the paperwork is filed correctly.

If there is ever a mistake on the loan documents, you will be contacted by the title company and expected to make arrangements with them to fix the errors.