Much like the purchase of a home, the closing for refinancing a property in Florida can be a complicated process. The paperwork your bank or credit union will send you is extensive and may be hard to understand. But it is important, because this is a binding contract between you and your lender.
Your lender may ask you to use their attorney or closing agent to close your refinancing loan. But Florida law allows you to select any closing agent for the mortgage refinance that you desire.
The Refinance Closing Process: How It Works
By the time you get to the refinancing closing you will have already submitted all your paperwork to your lender and gotten approval to refinance. A refinancing is similar to a purchase because you are again agreeing to take on a new mortgage; the only difference is that this time you don’t have to move.
Just like when you first purchased your home, during the refinancing closing you will be asked to review and sign many documents. First, you must give the closing agent a copy of your driver’s license or other identification. You also must provide evidence that you have the required homeowners insurance. The closing agent will then explain the various papers from the bank, which include the closing document (CD) you will have received several days earlier that details all your closing costs and the future monthly payments you will make to your lender. If you are bringing money to the closing–either to pay down some of your principal or to cover closing costs and prepaid interest, taxes and insurance–you will give a certified check to the closing agent at the time of the closing, or you will have wired the money to the office in advance. If instead you are cashing out from your prior loan, closing costs, interest and the like will be taken out of those proceeds. You will sign all of the papers and the closing agent will notarize your signature. After the refinancing closing is completed, the closing agent will pay off your prior lender and issue you a new deed.
Depending on your loan terms, you may be required to set up a new escrow account with your lender, so you can pay your property taxes and homeowners insurance along with your monthly mortgage payment from that account.
TAKE NOTE: Unlike when you buy a home, Federal law gives you three days after the refinancing closing to cancel the loan without penalty. If you feel uncomfortable for any reason with the documents that you signed, be sure to contact an attorney within these three days.
While signing all the documents at a refinancing closing may be as easy as the flick of the wrist, it is of utmost importance that you understand each document that you are signing. An experienced real estate attorney such as The Law Office of Gary M. Landau, located in Coral Springs, Florida, can help. South Florida attorney Gary Landau has been practicing real estate law, including as a refinance closing attorney for banks and individuals, for many years, and will provide the attentive, experienced, and cost-effective representation required for the easiest possible closing process.
Contact us by phone or email for a FREE consultation to learn more about our firm and how we can help you with your refinance closing in Florida.