Why do lenders require a title report?
A title report is a document used by lenders for various reasons, though the most common is for the purpose of determining the title’s current status. Several issues must be satisfied before a lender will approve a loan. This results in the need of a title search the gathering of pertinent information such as the last deed of record stating the present owner’s name; the property’s legal description; any open liens (judgments, federal and/or state tax liens, mechanic liens); open mortgages, as well as any other notations of title concern. The gathering of this information takes place in the county clerk’s office. Once completed, the title report falls under the scrutiny of the lender. Along with credit bureau checks and appraisals, the lender will use the report to determine the approval of home equity loans, refinance loans, or lines of credit.
