Refinancing your mortgage can save you money on interest rates or provide cashback, and even help you own your home sooner with a shorter term.
An attorney knowledgeable about the refinance closing process can help to ensure you save your money on interest rates
Let’s explore how lawyers assist in this process.
Why You Need an Attorney for Refinance Closing
The initial closing disclosure, provided by the lender, outlines loan terms, fees, amounts, payments, and closing conditions.
A lawyer skilled in legal terminology prevents you from signing unfavorable agreements.
By law, lenders must provide you with three days to review legal loan documents before signing.
Bringing a lawyer to the closing ensures convenience and safeguards against potential exploitation.
Represents Your Interests
Your attorney will review contract terms, negotiate on your behalf, and represent your best interests.
Lawyers are obliged to deliver a reasonable level of care, skill, and knowledge in their services.
Having an attorney during the closing process safeguards your rights and protects against potential exploitation by unscrupulous individuals.
Complete a Title Search
Your hired attorney will perform a crucial title search during the closing process.
Only licensed attorneys are legally allowed to conduct title searches, providing you with essential protection.
Relying on the lender’s attorney is not ideal since they serve the lender’s interests, not yours.
An experienced attorney in this field ensures the proper clearance and discharge of your first mortgage to prevent future issues.
Maintaining a clear title simplifies the home-selling process and prevents potential disputes over property sales or outstanding financial obligations tied to the property.
Protecting You from Refinancing Schemes and Hidden Fees
Some companies exploit individuals for personal gain, and the complexity of refinancing has made it easier for such entities to take advantage.
Attorneys play a crucial role in safeguarding your interests by carefully reviewing paperwork, ensuring favorable or equitable terms, and ensuring that the closing process complies with legal requirements.
Making a Complicated Process Simple
Given the potential for complications, simplifying the legal transaction is crucial. An attorney will comprehensively assess all components and explain them in homeowner-friendly terms, guiding you through the entire refinancing process, from initiation to closing, ensuring you have a clear understanding of the necessary steps.
Obtaining the Title Commitment
Your closing attorney meticulously examines the lender’s title requirements, starting with a review of general and specific instructions and determining the title policy needs, including endorsements and a detailed chain of title.
With a wealth of real estate-related information to navigate, the attorney ensures proper organization and issues an accurate title commitment. This commitment is then sent to both you and the lender.
Processing and Preparing the Closing Documents
The average person may find processing and preparing closing documents challenging.
Your closing attorney will review various legal documents, including a closing protection letter, city/county lien tax report, title insurance endorsements, lender requirements for homeowner’s insurance, a survey, lender’s closing package, and payoff information from the existing lender.
After securing refinancing, your real estate attorney ensures proper funding and disbursement procedures.
They also update the title commitment to reflect new exceptions or requirements and provide you with updates or changes to your closing letter.