Your choice of title company can add hundreds of dollars to your closing costs or save you from costly delays and errors. Title companies handle everything from title searches to insurance and coordinating the actual closing day—yet many buyers and sellers simply accept whoever their realtor or lender recommends. Knowing what to compare upfront puts you in control.
Why Title Company Selection Matters
Title insurance protects your ownership rights against hidden claims, liens, or document fraud that a standard search might miss. The title company also acts as the neutral third party holding earnest money and conducting the final walkthrough of funds. A disorganized or slow-moving title company can hold up your closing by weeks; a sharp one catches red flags before they become expensive problems.
Most homebuyers don't realize that title company fees—typically ranging from $500 to $2,000 depending on your loan amount and state—are often negotiable. Unlike some closing costs locked in by your lender, you have genuine leverage here.
Start by Getting Preliminary Quotes
Call or email at least three local title companies and provide:
- Purchase price or loan amount
- Property address
- Estimated closing date
- Whether you're a buyer, seller, or refinancing
Request an itemized quote that breaks out title search, title insurance premiums, closing/settlement fees, and any state-specific endorsements. Don't just compare the headline number—a $700 quote might hide surprise recording fees, while a $900 quote might be all-inclusive. Ask each company whether their quote includes a final walkthrough and wire fraud protection.
Most local title companies will send a quote within 24 hours. Comparing three quotes takes roughly an hour and often uncovers $200–$400 in savings.
Check Their Speed and Responsiveness
Call the title company's main line and ask specific questions:
- How soon can they schedule a closing after you commit?
- What's their typical turnaround for a title search (usually 3–5 business days)?
- Do they offer evening or weekend closings if you need flexibility?
- Who is your assigned closing agent, and what's their direct line?
A company that transfers you to voicemail three times or takes 48 hours to respond to emails is a red flag—especially critical if your closing is less than two weeks away. The best title companies provide a named closing agent upfront, not a generic support line.
Verify Their Insurance and Credentials
Before committing, confirm:
- They're licensed and bonded in your state
- They carry errors and omissions (E&O) insurance
- They're an approved agent for major title insurers (Fidelity, Stewart, Lawyer's Title, etc.)
You can verify licensing through your state's insurance commissioner website or the American Land Title Association. An approved agent status matters because it ensures they meet underwriting standards and can issue policies without delays.
Ask About Title Issues Upfront
Request that the title company run a preliminary title search before you commit. This costs $50–$150 but reveals existing liens, easements, or ownership disputes that could kill the deal or require attorney involvement later. A proactive title company flags these issues in advance; a reactive one discovers them at closing and triggers emergency repairs.
Ask how they'd handle specific scenarios: unpaid property taxes, a former spouse on the deed, or a boundary dispute. Their answers reveal whether they think strategically or just process paperwork.
Review Their Closing Coordination
The title company coordinates between your lender, real estate agent, insurance company, and local government recording office. Clarify:
- Who prepares the closing disclosure and settlement statement?
- How many days before closing do you receive final numbers?
- Can they explain wire instructions and identify fraud risks (scammers often impersonate title companies)?
- Do they handle the actual property recording after closing?
Mercoly makes it easy to compare and find trusted Closing & Settlement Services providers in one place, so you're not juggling phone calls across five different companies.
Frequently Asked Questions
Q: Can I choose my own title company, or does my lender dictate it? By federal law, lenders cannot force you to use a specific title company, though they must approve your choice. You have the right to shop around—just confirm your selection complies with your loan requirements.
Q: What happens if the title company finds a problem during the search? The title company notifies all parties and may require clearance before closing—sometimes involving the seller, a liens holder, or an attorney. This is exactly why choosing a thorough title company matters.
Q: Is the cheapest title company always the best deal? Not necessarily. A $200 savings disappears quickly if they delay closing, miss a lien, or provide poor communication. Balance price with responsiveness and credentials.
Ready to compare your options? Start by requesting itemized quotes from three local title companies today.