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Why You Need an Attorney for Refinance Closing
You decided to refinance your mortgage to either lower your interest rates or receive cashback. Perhaps you selected a shorter term to own the home sooner. Regardless, this choice could lead to you saving hundreds or thousands of dollars per month. However, you want to ensure that the savings come back to you immediately, and you can do this with a real estate law firm in Boston that understands the refinance closing process. Let’s have a look at how lawyers can help with this process.
Why You Need an Attorney for Refinance Closing
An attorney, like the ones at Goldberg and Oriel, will represent your best interests in the refinance closing. The initial closing disclosure consists of a document from the lender that notifies the borrower about the loan terms, the fees, the loan amount, the projected payments and the conditions for closing. Having a lawyer who understands the legal jargon ensures that you don’t sign an agreement unfavorable to you. By law, the lender must give you three days before you sign the legal loan documents. You will want to bring that with you to the actual closing. Hiring a law firm makes it more convenient and ensures that no one takes advantage of you.
Represents Your Interests
Your Massachusetts law firm will look over the terms of the contract, and he will negotiate on your behalf. Lawyers have an obligation to represent your best interests, and they must bring a reasonable amount of care, skill and knowledge to the service. Throughout the closing process, having an attorney on hand will protect your rights from unscrupulous individuals who would take advantage.
Complete a Title Search
The attorney that you hire will conduct a title search for clearing the close. By law, only licensed attorneys have a right to perform title searches, and you want to have this service performed because it protects you. You don’t want to depend on the lender’s attorney because they don’t work for your best interests—they work for the lender and have no legal obligation to you. A good attorney who understands this realm of law can ensure that you pay off your first mortgage and discharge it from your record. You want someone who covers you on the legal end because you don’t want it coming back to haunt you. Keeping a clear title will also make selling the home easier because it shows if outstanding financial responsibilities come attached to the property. Along with that, someone can come along and dispute the sale of a property if you don’t have a clear title.
Protecting You from Refinancing Schemes and Hidden Fees
Unfortunately, not all companies exist to help others, and you have some willing to take advantage of people for their own gain. The popularity of refinancing has caused many shameless refinancing companies to use the complicated process of refinancing against people. An attorney will carefully review the paperwork before you sign. They will check to see that signing it will be under favorable or equal terms, and they will ensure that the closing follows the laws and regulations.
Making a Complicated Process Simple
As we said before, the process has the potential for many complications, and you want to make the legal transaction as simple as possible. With the many working parts, an attorney will look at everything involved to explain things in a simple way that the average homeowner understands. He will guide you through each step in the process from the beginning of the refinancing to the closing of it. You want to fully understand what steps you need to take.
Obtaining the Title Commitment
Your closing attorney will carefully review the lender’s title requirements. He starts with reviewing the general and specific instructions and determines the title policy requirements. This includes endorsements and a recitation of the chain of title. A large amount of related information for real estate exists, and it can prove difficult to navigate. The attorney will organize it properly and issue an accurate title commitment. Once you prepare the commitment, you will send it to both you and the lender.
Processing and Preparing the Closing Documents
None of the processing or preparing of the closing documents will be simple for the average person. Your closing attorney will need to review several legal documents, which include:
- Closing protection letter
- City/county lien tax report
- Title insurance endorsements
- Lender requirements for homeowner’s insurance
- A survey
- Lender’s closing package
- Payoff Information from the existing lender
Once you have secured the refinancing, your real estate attorney will confirm the funding and disbursement procedures. He will also update the title commitment to reflect new exceptions or requirements, and he will send you the updates or changes to your closing letter.
At Goldberg and Oriel, we overlook the closing process in refinancing to make sure that no one steps on your rights. You deserve to be treated right when you go to refinance your home. We will make sure that no one steps on your rights. Unlike with a home purchase closing, fewer people get involved in the refinance closing. The closing agent will be involved in the closing process, and they will often meet you from the comfort of your home.