Why homebuyers should shop to save on title services
Homebuyers who close with Federal Title are often surprised to learn how much money they’ve saved on their closing costs. This is because we offer every homebuyer (and refinancing homeowner) an instant rebate known as a REAL Credit™.
So why don’t all title companies offer a similar savings?
As our fearless leader Todd Ewing likes to say, long ago Federal Title kicked the “affiliated business arrangement” habit. Some title companies out there are affiliated with real estate firms, mortgage companies – and sometimes both. When they send business to the title company, the title company pays those guys a referral fee, an expense that’s often passed on to the homebuyer.
This is why we tell every homebuyer to shop for title services, just as Todd told Michele Lerner of the Washington Times in the recent article “Shop to save on title services,” which ran last Friday on the cover of the Homes Section.
Our REAL Credit™ represents what a title company would typically pay to the referral source and ranges anywhere from $100 to $1,100 depending on the purchase price.
Proponents of these so-called ABAs like to say it’s actually beneficial for consumers, a sort of “one-stop shop” system that’s more convenient. They don’t like to talk about how the cost for said convenience often comes at an increased price.
I don’t know about you, but I find saving money to be pretty freakin’ sweet, and if it’s a question of saving as much as $1,100 or more, you can bet I’m going to do some research. It is so easy to shop for title services. The Internet is a magical invention that pulls information – such as closing fees and title insurance rates – at the click of a button.
We’ve even gone a step further and done the homework for you. Check out the DC Metro Closing Cost Report to review closing fees from title companies who’ve published their rates online.