Homeowner’s and Title Insurance
At the closing, the new homeowner must prove at least minimum coverage for the house. A lender’s collateral is the house, and they will not sign off on a purchase without knowing it is covered. This will be stated in the HUD-1 form that is presented at closing.
Title insurance covers issues such as unpaid property taxes, liens and other issues from previous owners. Any lender will require this insurance throughout the life of the loan.