You Can Choose Your Title Company in Florida (and Save Money on a Refinance)

A lot of buyers and homeowners don’t know this: you usually get to pick your title company. It doesn’t have to be the one your lender, builder, or the other side suggests. Here’s why that choice matters and how it can lower your costs, especially on a refinance.

You have the right to choose

Under federal law (RESPA), a seller can’t require you to buy title insurance from a particular title company as a condition of the sale. On most mortgage loans, your Loan Estimate also has a section called “Services You Can Shop For,” and title services are usually listed there. A suggestion is just a suggestion.

Why it matters who handles your closing

Your title company does more than issue a policy. It:

• Searches the public records and clears liens, judgments, and old mortgages
• Orders estoppels and payoffs, and makes sure they’re paid at closing
• Prepares the closing statement and handles your money in escrow
• Records the deed and mortgage correctly

A responsive title company that clears problems early is often the difference between closing on time and closing late.

Where the money is on a refinance

In Florida, the title insurance premium is set by state rule, so the premium itself is the same everywhere. The savings come from everything else:

• Settlement and closing fees: These aren’t set by the state, and they vary from company to company.
• Search and lien fees: Title search, municipal lien search, and other service charges also vary.
• Reissue credit: If there’s a recent prior title policy on the property, you may qualify for a lower reissue rate on the new lender’s policy. Ask for it. Not every company checks unless you do.
• No new owner’s policy needed: On a refinance, you normally only need a new lender’s policy. Your original owner’s policy keeps protecting you.

On a refinance, the lender’s default title company may not have the lowest fees. One phone call and a quote comparison can put money back in your pocket.

How to choose

1. Ask for a written quote with every title and settlement fee listed, not just the premium.
2. Compare line by line against the title charges on your Loan Estimate.
3. Ask about the reissue rate if your property was insured recently.
4. Ask who your closer is and how quickly they return calls and emails.
5. Tell your lender early which title company you’ve chosen, so the file is opened right away. (See how long a Florida closing takes.)

Bottom line

Choosing your title company gives you control over service and fees. On a refinance, it’s one of the easiest ways to lower closing costs. You can start a closing cost quote from our homepage.

This article is general information only and is not legal advice. Every transaction is different. For advice about your specific situation, talk with a Florida real estate attorney.