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The Crucial Role of Refinance Title ServicesThe Crucial Role of Refinance Title Services

The Crucial Role of Refinance Title Services

01 Jul 2019

Refinancing offers a crucial opportunity for borrowers to obtain a lower interest rate on their home loan, or to borrow additional funds to finance property improvements, capitalize other ventures, or pay off personal debts. Refinance Title Services are critical for furthering the process along and ensuring that borrowers obtain the invaluable financing they need to meet their personal or investment goals. Even if the borrower does not have an existing mortgage, they can tap into the equity in their home via a home equity loan or line of credit, which also requires the engagement of a title company to provide title services. These are just a few of the services that a professional title company like Marina Title can offer.

 

Title Research and Examination

First and foremost, a lender will want to ensure that the borrower is the legal owner of the property that they seek to refinance. The lender also wants to know if there are any problems with the title, such as a lien, code violation, judgment, or claimed property interest, to name just a few examples. Even if the title was researched for the initial mortgage, any number of changes could have occurred to the title since that time. An exhaustive title examination assures the lender that the title is free and clear of any problems, and that the refinance can thus proceed. In the event that any issues are uncovered, the borrower must resolve them on or prior to the closing date of the refinance.

 

Title Insurance Policy

For as long as you own the property, your original title insurance policy will remain in effect.  However, each time you refinance or obtain a home equity loan, the new lender will want a new loan title policy to protect their security interest in the new loan, especially since many mortgages are packaged as securities and sold to investors in the secondary mortgage market..

 

Point of Contact

Title companies can serve a vital role as the liaison between the borrower and lender, helping to determine the amount of money required to pay off the existing mortgage as well as other important matters that must be addressed for the refinance or home equity loan to proceed. They might also communicate with the borrower, attorneys, city officials, surveyors, and anyone else who may be involved in the obtaining of the loan. The title company can be a vital hub for keeping all communications going and ensuring that the wheels keep turning towards a successful refinance for all parties involved.

Closing

The ideal conclusion of any refinance is the closing, where the borrower signs the loan documents, such as a new promissory note and mortgage, and the title company disburses the loan proceeds. The title company’s closing agent prepares a clear and comprehensive settlement statement listing all the fees to be paid from the loan proceeds and the amount that will be disbursed. At the closing, the borrower signs this statement and the loan documents, and the title company delivers the mortgage to the county recorder’s office to be recorded in the public records.

Disbursement

If the purpose of the refinancing is to provide additional funds, the lender may deliver the funds to the title company to hold in escrow until closing. The title company then disburses these funds to the borrower and any other parties entitled to payment based on the settlement statement. After the closing, the title company might provide the lender with the final title insurance policy to protect the lender’s new security interest on the property.

Contact Marina Title to Learn More About Our Refinance Title Services

To ensure a smooth and fruitful refinance or home equity loan process for all parties involved, it pays to have title insurance specialists like Marina Title on your side. We have worked with a wide variety of lenders and borrowers in refinance transactions, handling everything from the title work to the closing. Our wide breadth of experience in all matters related to title and real estate will better your chances of a smooth and seamless closing process.

For more information on our Refinance and Home Equity Title Services, please call us at (305) 901-5628 or send us an email to info@marinatitle.com.

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