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Mortgage Merlin
Property & transaction

Title insurance

Insurance protecting the lender (and optionally the buyer) against claims against the property’s ownership history — unpaid liens, forgeries, unknown heirs, or recording errors. Lender’s title insurance is required; owner’s title insurance is optional but advisable. A one-time premium paid at closing.

How does this affect your loan? Estimate self-employed qualifying income with the DTI calculator, or read the self-employed mortgage guide.

Related terms

  • Earnest moneyA good-faith deposit made when your offer is accepted, demonstrating serious purchase intent. Typically 1–3% o
  • Closing disclosure (CD)The final itemized disclosure of your loan terms, rate, monthly payment, and all closing costs. Federal law re
  • HOA (Homeowners Association)Monthly fees for shared-property communities (condos, townhomes, planned developments) covering common area ma
  • Primary residenceThe home a borrower lives in as their main residence. Lenders apply the most favorable terms to primary reside
  • PITIPrincipal, Interest, Taxes, and Insurance — the four components of the full monthly housing payment. Principal

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Sources

Educational definition only — not financial, legal, or tax advice. Programs and limits change; verify current terms with a licensed professional.