Home Mortgage Refinancing Procedure: Closing

Understanding the Home Mortgage Refinancing Loan Closing Process

The closing is perhaps one of the most tedious jobs in the entire process of financing or refinancing a home, and if you are refinancing you probably remember the original closing. Most people have the image of a group of tired individuals sitting around a table, passing papers, pens, and signatures around the house, not to mention strong coffee. Unfortunately, that image is often correct. So rest up and eat well the day before—you will need patience and stamina. Here is a short survival kit to help you come out of the process without any surprises.

Documents Needed for the Closing of a Home Mortgage Refinancing Loan

At your closing, an agent will be present to review and organize all documents with you. She will answer your questions and explain anything you request. Take advantage of this: read your documents and ask questions. One of the most common tales of woe that comes out of closings is people who didn’t review every word in the paperwork and had a surprise that cost them. “If I had just taken the time to read the [insert document name here]!”

It doesn’t have to be that way. If you don’t think you have the discipline to read everything, hire a lawyer to accompany you and represent you. If you think you can’t afford it, think of what could happen to your mortgage if you don’t. The world is full of people who were taken advantage of at closing time.

Make Sure You Check for All Home Mortgage Refinancing Costs, Fees and Charges

The closing is also the time to look for charges you weren’t expecting. If a lender claims to have forgotten to tell you about a charge, challenge this. A good lender doesn’t’ forget things like that. Also watch for blank paperwork. Never sign any blank paper. Make sure your signature has a purpose everywhere—an unscrupulous person could insert anything into a blank piece of paper.

Conclusion and Summary

Assuming all goes well at your closing, your documents are notarized. Then the lender must review them again. Remember your 3-day recission period—you have three business days to cancel the transaction. During this time, have the paperwork looked at by any experts you feel you will need. Use this time wisely—once it passes and the lender confirms the loan, the documents will be officially recorded and money distributed as to the terms on the paperwork.