Last saved by: Lynn Marie Greaves

Title Insurance vs. Attorney Opinion Letter 
Closing costs on a home purchase can add up, with appraisal fees, home inspections, lender fees, etc. About two years ago, Fannie Mae updated its rules to accept attorney opinion letters on some loan programs, in lieu of title insurance. The objective was to help home buyers save money on closing costs. Let’s take a look at the difference between the two.
What is Title Insurance?
There are two types of title insurance designed to guard against any challenges to a property title. One protects the lender’s financial interests, and this fee is included in your closing costs. The other type of title insurance protects the home buyer. 
Both involve extensive background research to protect against defects in title or claims, such as:
* Outright fraud and/or forgery
* Conflicting ownership claims, such as will complications and similar disputes
* Outstanding lawsuits, liens, and other encumbrances
* Errors in public records
* Undisclosed easements
What is an Attorney Opinion Letter?
An attorney opinion letter is a legal document that states an attorney’s professional opinion regarding the property title, based on public records. Here, you have legal advice with no guarantees. 
This can be a cost-effective alternative to title insurance. However, if the attorney overlooks something, you have less protection in the event of a dispute. This can be very costly! 
Give me a call if there is anything I can help you with, regarding mortgage planning! I would love to hear from you.