How to avoid overpaying for escrow and title insurance

If you want to make your home purchase just a little more affordable, focus on the transaction costs.

You may not be able to do much about the home price because you and the seller must come to a mutual agreement. You cannot do anything about mortgage interest rate ranges.

But you can do something about escrow and title insurance fees, services that are required to complete a sale.

The Real Estate Settlement Procedures Act, a federal law enacted in 1974, protects homebuyers by giving them the right to shop for and choose the escrow agent and the title insurance company.

In practice, that’s not how it works.

First, let’s start with Southern California customs in the resale market. The buyer and the seller split the total escrow fee 50/50.

The seller pays for the owner’s title insuranc