Who is typically hired by mortgage companies and lenders to assist with closing a loan?

Title companies are typically hired by mortgage companies and lenders to assist with closing a loan because they play a crucial role in the closing process. Their primary function is to facilitate the transfer of ownership from the seller to the buyer while ensuring that all legal and financial obligations are met. This includes conducting title searches to verify that the title to the property is clear of any liens or encumbrances, preparing the closing documents, and ensuring that the funds for the purchase are properly disbursed.

By handling the title aspect of the transaction, these companies ensure that the buyer receives a clear title to the property, which is essential for securing the lender's investment. Their involvement helps to mitigate risks for both buyers and lenders during the complex closing process.

In contrast, real estate agents primarily help buyers and sellers navigate the property market and facilitate negotiations but do not directly handle the closing process. Home inspectors focus on assessing the condition of the property for potential buyers but are not involved in the loan closing. Contractors provide construction services and repairs, which are unrelated to the mortgage process. Therefore, title companies are the appropriate choice for assisting with the closing of a loan.