Title insurance is used to protect one of the largest investments that a homeowner will ever make. A lender will go to great risk to minimize its risk of losing money for the purchase of real estate. First, credit is checked as an indication of a borrower's ability to repay a loan. Second, the lender seeks assurance that the quality of the title to the property to be acquired and which will be pledged as security for the loan is satisfactory. The lender does this by obtaining a loan policy of title insurance.