Lenders are sophisticated real estate investors, and they understand the issues and problems that can affect the title to any given property. That's why most of them require a home buyer to purchase a lender's policy when they issue you a loan.
This policy, also known as a loan policy or a mortgage policy, protects the lender against loss due to unknown title defects. It does not protect the purchaser, which is why a home buyer should also get an owner's policy. A lender's policy is usually based on the dollar amount of your loan, and the amount decreases as you pay down your loan and eventually disappears as the loan is paid off.
Request a loan from your lender
Order a lender's policy from PCI Advance Title
Pay down your loan and policy
Frequently Asked Lender's Policy Questions
How long does the lender's policy last?
Lender's policies remain in effect until you repay the loan. Most lenders will require you to buy a new loan policy if you refinance your home. When the new loan pays off the existing loan, the old loan policy expires.