Refinancing Borrowers

 

 

        After you apply for a loan to refinance your property a closing attorney will be assigned to handle your closing. The closing attorney represents the bank, not you, but in most cases your interests are generally similar and most people do not retain a separate attorney to represent them at the refinance closing.

 

          As with a purchase transaction you should receive a written letter of commitment from your lender containing the terms of your loan. It is important that any specific conditions listed in the commitment letter or otherwise communicated to you be met to the satisfaction of your lender prior to the scheduling of your closing. You should maintain contact with your loan representative in order to ensure that you have met all of the mandated conditions so that your closing can be scheduled on the date you request.

 

          Anyone borrowing money for the refinance of a home must provide a homeowner’s insurance binder designating the lender as the loss payee. You should contact your loan representative or lender's underwriting department on how to designate the lender on the binder. Please note that the name and address of your lender must be stated on the binder exactly as the lender requires. The insurance binder must also indicate coverage in a minimum amount equal to the guaranteed full replacement and/or repair costs or in such other amount as your lender specifically instructs you to secure. You must also provide a paid receipt evidencing that you have paid the current full year's premium in advance.

 

          If the property is a condominium, instead of obtaining a typical insurance binder as outlined above, a Certificate of Master Insurance must be secured from the Condominium Association insurer naming you and your lender according to the instructions provided by your loan representative or lender's underwriting department. 

 

          Title insurance for the loan amount is required to protect the lender from any defects in title not ascertainable by a search of the public records. Title insurance is also available to protect the owner from title defects, though most people obtain owner’s title insurance upon purchase of the property. There is a one-time charge for purchasing this coverage.

 

          Not less than three business days before your closing, the lender will send you a Closing Disclosure containing all of the costs and figures associated with the loan. At that time the precise dollar amount (if any) that must be brought to closing will be calculated. All funds brought to the closing must be in the form of either a bank check, cashier's check, certified check or money order, or wire transfer. One check or wire to cover all expenses is acceptable. Checks should be made payable to the Law Office of Michael M. Greenburg, P.C. All Borrowers and others signing documents are required to be personally present at the closing with proof of identification.

 

          If you are refinancing a condominium, it will be necessary to obtain a certificate as to unpaid common charges (also known as a 6(d) Certificate). This should be in the form of a notarized statement signed by the Trustees or Board of Managers of the Condominium Association certifying that all outstanding condominium fees have been paid through the end of the month of closing.

 

          Please bring a photo identification to the closing such as a driver's license. The title insurance company requires positive identification from all persons signing documents.    

 

          If you are refinancing, it will be necessary for you to provide the closing attorney with information as to the existing mortgages on the property so that arrangements can be made for the satisfaction of same out of the closing proceeds.