What is title insurance versus a title search, and do I need both when getting a mortgage?

A title search examines public records to confirm the seller legally owns the property and to uncover liens, unpaid taxes, or ownership disputes before closing. Title insurance then protects against problems the search might miss, such as forged deeds, unknown heirs, or clerical errors, that could threaten your ownership later. There are two policies: a lender's policy, which the lender requires and protects only its loan interest, and an owner's policy, which protects your equity and is optional but strongly recommended. Both are usually one-time premiums paid at closing. You can shop for the title company to lower the cost, since it is a service listed in section C of your Loan Estimate. Skipping the owner's policy to save money leaves your investment exposed.