Should I choose my own closing service provider?

Should I choose my own closing service provider?

On Behalf of | Nov 16, 2022 | Real Estate Law |

You have diligently been working through the process of buying a home in Pennsylvania and you are at the point where you are ready for closing. At this point you may have the option of choosing a third-party known as the closing service provider to conduct the closing process.

Your lender is required to provide a list of closing service providers. If you choose a provider who is not on this list, your lender will need to agree to work with that person instead of someone on the list. You can ask family and friends for recommendations, or you can search for providers on the Internet.

If you do not choose a provider

If you do not choose a closing service provider yourself, your lender will choose one. It may be more cost-effective, however, to select your own service provider as lenders often choose a more-costly affiliate to serve as the service provider. Your lender may also ask that you purchase a lender’s title insurance policy, and you may also want to purchase an owner’s title insurance policy as well.

Are you ready for closing?

There are many steps in the closing process. If you are unfamiliar with them, it could slow down the real estate purchasing process or even lead to costly mistakes. While Pennsylvania law does not require you to be represented by an attorney at closing, many potential homeowners find that having legal representation is key to ensuring they understand the process and that any problems are handled by a professional.