Residential Refinance Title Closings

For many homeowners, the choice to go with residential refinance title closings is a sound one. It can lower payments and/or mortgage rates. It can also result in a mortgage being paid off sooner.

For better or worse, though, residential refinance closings are not simple processes. They can leave many homeowners feeling anxious, frustrated, and puzzled when they are dealing with a property title transfer. Here, then, is a step-by-step guide outlining the basics of residential refinance title transfers.

Residential Refinance Closings: The Process

First, the homeowner approaches a lender and gets approval for a loan to refinance the home. This is very much like buying a home in the first place because the homeowner is once again taking on a mortgage. The only real difference is that this time, it is a new mortgage on the home where he/she already lives.

Once the homeowner has completed all of the paperwork the lender requires to finalize a residential refinance title the residential refinance closing process can begin and the property title transfer can occur.

Are you in the process of refinancing your current home? Do you need help with home title services? If you have any questions or needs, contact our Attorneys to find out how we can help you easily navigate the real estate purchasing/mortgage process and how we can provide you with the peace of mind you deserve. True Title is a company setting a standard of excellence industry-wide. We at True Title have been committed to excellence in customer service since 1998.

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Residential Refinance Closings: The Homeowner Can Select the Closing Agent

The first thing to know about residential refinance closings is that in Florida, the homeowner has the legal right to choose the Florida title insurance company to close the transaction.  Lenders often suggest using their preferred Closing Agents, and a particular homeowner may feel that is perfectly acceptable. But those with concerns about how well their interests would be represented are entitled to select their own Florida title insurance company.  In this capacity, True Title will coordinate with the lender to satisfy any and all requirements of the new loan.

At the residential refinance closing to refinance the house, True Title must examine the homeowner’s driver’s license or other legal identification and proof of homeowner’s insurance. Once this is done, True Title’s title professional will explain to the homeowner/borrower all of the documents that pertain to the residential refinance closing including any technical terminology. Any questions regarding the residential refinance title transfer will also be addressed.

Residential Refinance Closings: Three Important Documents

These are three of the most important residential refinance closing documents:

  1. The Closing Disclosure (CD) delineates all of the charges involved with the residential refinance closing as governed by Federal Law as well as the monthly payments the homeowner will be making to the lender. The borrower receives this at least three business days before the actual closing to give him/her ample time to review it.
  2. The Promissory Note is the document the homeowner signs to promise to repay the lender for the residential refinance title transfer.
  3. The Mortgage is the document that puts a lien on the property in case the homeowner fails to replay the new loan. True Title records the mortgage in the official records of the county where the property is located, and this gives the lender the right to foreclose on the property if the homeowner/borrower fails to repay the loan as per the terms and conditions laid put in the property title transfer paperwork.

Residential Refinance Title Exchange: How to Pay Cash

Sometimes cash changes hands at a residential refinance closing. Homeowners may wish to arrange this to pay down some of the principal or to cover closing costs and prepaid interest, insurance, and taxes. One way to accomplish this is for the borrower to wire the money to the Florida title insurance company in advance. Alternatively, he/she can deliver a check to True Title at the closing.

Sometimes the homeowner is cashing out from a previous loan to refinance the home. When that is the case, closing costs, interest, and similar expenses come out of that money.

It is possible the terms of the loan will require the homeowner to open a new escrow account with the lender. If so, the homeowner will pay his/her monthly mortgage payment, property taxes, and homeowner’s insurance all from that one account.

It is important that the homeowner thoroughly understand every document of the property title transfer and financing agreements before signing anything. A residential refinance agreement is as binding as any other contract, and the homeowner is assuming a legal financial obligation for several years to come. It is needed for any residential refinance title transfer or transaction that is done.

Residential Refinance Closings: Buyer’s Remorse

With that said, there is one protection Federal law affords to the borrower in a residential refinance transaction that is not afforded to people purchasing a new home. After the closing, the borrower has three days to cancel the loan without penalty if he/she has decided it is not in his/her best interests to stay in the loan.

When the homeowner signs the documents produced by the lender and True Title, True Title’s Closing Agent notarizes them and completes the residential refinance closing. True Title then pays off the previous lender, records a satisfaction/release of the previous mortgage, along with the new mortgage, in the official records of the county where the property is located.

The title professionals at True Title are waiting for your call to assist you with every step of this refinancing and property title transfer process.  Call us now for assistance with residential refinance title details and title transfers and negotiations-  (877) 785-8792.

Are you in the process of refinancing your current home? Do you need help with home title services? If you have any questions or needs, contact our Attorneys to find out how we can help you easily navigate the real estate purchasing/mortgage process and how we can provide you with the peace of mind you deserve. True Title is a company setting a standard of excellence industry-wide. We at True Title have been committed to excellence in customer service since 1998.

Contact Us