So you’ve decided to refinance the mortgage on your home, and now it’s closing day! It is a good idea to be prepared for the closing because the day can be a whirlwind of activity. If you know what will happen ahead of time and what you will be signing, you can feel confident that you will close your refinanced mortgage loan successfully.
It may seem complex, and it is to some extent. There is a lot of paperwork to sign, and the procedure moves along fairly quickly. You shouldn’t be in the dark when it comes to closing, so it is recommended that you get informed about the details and your rights. A mortgage closing can be a confusing experience for the average person. Once you’ve gone through the process when purchasing a home, a closing for refinance isn’t much different. Whether you are closing with your current lender or a new lender, you will be required to sign a complete set of new documents since you are getting a new loan to replace your old one rather than modifying it. The two most important papers are the mortgage and the promissory note.
Where will the closing take place?
The closing can be held at your lender’s office, the title company’s office, a real estate attorney’s office, or other location that all parties have agreed upon.
Who will be at the closing?
The people who attend your closing depend on the property type, the state where the property is located, and other factors. In addition to you, attendants may include:
- Your attorney
- The closing agent
- Notary public
- Your mortgage broker
- Representative from the title company
What will you sign?
- HUD-1 Settlement Statement
- Deed of Trust
- Promissory Note
You will also present your certified or cashier’s check to cover the closing costs, taxes, and any prepaid interest. You will also be required to provide evidence of any required inspections or homeowners insurance.
- Schedule your closing as early in the day as possible just in case you run into any problems.
- Make sure all of your paperwork is neatly organized.
- Remember to bring all of the essential documents like copies of your current mortgage, property tax receipts, and a money order or check for the closing costs.
- Go over the HUD document with a fine-toothed comb.
Whether you’re closing a refinance mortgage, second mortgage, or home equity loan, being prepared can avoid the loss of important paperwork and other headaches. Closing day should be an exciting experience, so make the most of it by being prepared. You will have the opportunity to review the documents before signing and to ask any questions that you may have. The lender does not gain anything if you do not understand something about the process.
Contact Home Loan Advisor to get a detailed home value report for free and find lenders that can help you with a refinance on your home loan today!