Even at its best, refinancing your home can still be a long, difficult process. So, when it finally comes time to close on your new mortgage, it’s almost always a huge relief. But the work isn’t quite done yet. There are a number of steps you’ll need to take to ensure a successful refinance closing. Here’s what to expect from the refinance closing process as well as a checklist to keep everything in order.
Initial Closing Disclosure Statement
By law, you should receive your closing disclosure statement at least three days before your refinance closing day. This document will provide a detailed account of all the financial particulars of your refinancing deal. These typically include things like the loan amount and term, your interest rate, projected payments, origination fees, other lending fees and any special closing conditions. Be sure to review this document carefully so you know exactly what kind of deal you’re getting and what to expect on closing day. Your lending specialist should be able to answer any questions you have about the disclosure statement.
Closing Day is Document Day
When closing day comes, you will have to sign a number of important loan documents. The exact documents you sign will depend on what type of refinancing you get. Your lending specialist should walk you through the closing process. Refinance closing documents often include:
- Final version of the closing disclosure statement
- Your mortgage or deed of trust
- Promissory note
- Your right to cancel
To make sure you don’t miss anything important, here’s a checklist of all the documents you’ll likely need to sign during the refinance closing procedures:
As you go through the refinance closing process, remember that you can take all the time you need to review documents. Don’t let yourself be rushed into signing something you don’t fully understand. Ask questions so you can feel confident about your decision.
Closing day is also when you’ll need to pay any closing costs. Be sure to have a cashier’s check on hand to make the payment. After that, the process still isn’t quite complete. You’ll then enter a short waiting period to accommodate your right of rescission.
What is Right of Rescission?
After you’ve completed the refinance closing process and officially closed on your new mortgage, you will enter what is known as the right of rescission period. This three-day period is unique to home refinancing and gives you a three-day window during which you can back out of the deal if you change your mind. Use this time to review your loan documents again and make sure you’re happy with how everything turned out. If you’re closing on a cash-out refinance, it’s important to note that your money will not be available for three days to account for the right of rescission period.
Funding and Recording
After the three-day right of rescission period has passed, it’s finally time for your new mortgage to take effect. Your title company or escrow agent will record all of the documents and make everything official with the proper local governmental agency. Your lender will then fund the loan and you will start making payments under your new interest rate, potentially to your new lender. If you used cash-out refinancing, you can expect to see the funds in your bank account, as outlined in your refinancing agreement.
Closing on a mortgage refinance is very similar to when you bought your house. The only difference is that there’s no seller or real estate agents involved. And just like when buying or selling a house, you can save money by refinancing your home with the help of a Homes for Heroes mortgage specialist. Simply register online with no obligation and you’ll be automatically matched with a specialist in your area. They will work to get you the best possible rate and terms while offering discounted fees to save you money. It’s our way of saying thank you for all that heroes do to keep us safe and improve our local communities.
Want to save money when refinancing your home? Register with Homes for Heroes and let our mortgage specialists put their expertise to work for you — saving you time, headaches, and as much money as possible throughout the home refinancing process.