Closing a refinance is very similar to closing a purchase loan. The main difference is that since you own your home, there will not need to be additional signers at closing such as real estate agents or sellers.
What to Bring to Closing
It is sometimes possible to perform the closing on a refinance in your home, but regardless of whether you travel to a closing or the closing agent comes to you, here is a list of items that you should have ready:
- Identification such as a driver’s license or passport
- Cashiers check for closing costs (if applicable)
- Closing Disclosure so that you can verify final figures
- Loan Originator phone number in case questions come up
If I am getting cash out with my refinance, will I receive funds at closing?
During a refinance transaction, there is a thing called the right to rescission which is required by the Truth in Lending Act. Rescission on a refinance loan is three business days. The loan is not technically closed until the rescission period ends, so you will not receive your funds until that time has lapsed. You can expect the proceeds from a cash-out refinance within 3-5 days after you have signed the closing documents on your refinance.
Who Needs to Attend Closing
Anyone that is on the loan will need to attend closing. Additionally, if there is someone that is going to be on the deed, they will also need to attend. If circumstances do not allow for any of the participants to be present, they will need to grant power of attorney to someone that is able to attend and sign on behalf of the absent individual.
Refinance Closing Costs
It is sometimes possible to finance the costs associated with a mortgage refinance. There are variables such as Loan-to-Value and loan program that also are factors in the ability to finance closing costs.
On your Closing Disclosure, which you are required to receive at least three business days prior to closing, you will have a line-by-line breakdown of all fees that you are required to pay and the monthly mortgage payment details that will be due. The Closing Disclosure will show you exactly how much you are expected to pay at closing.
How long does it take to close a refinance?
Closing on a refinance loan is dramatically shorter than a purchase loan since there are fewer parties involved. During closing do not feel rushed. If you are not comfortable, take your time to read through any documents and ask questions that you are unsure of. You can plan to set aside 30 minutes.