Closing your loan refinance

Closing on your new loan is the final step in the refinancing process, and you should feel confident: This step is nearly identical to when you initially closed on your home loan.

You may remember your closing day — also called settlement — from when you initially purchased your home. You signed many important documents, paid closing costs and walked away with the keys to your new home. That’s good news because closing on your refinance is a very similar process.

However, if it has been some time since your initial closing, learn how you can prepare for a successful closing and what you can expect. Remember, it’s important to ask questions if you are unclear with any part of the process. You’ll want to avoid any surprises.

What to prepare to refinance

Three days before your closing date, you’ll receive your closing disclosure. This document will lay out the final details of your refinanced loan and closing costs you have agreed to. It will break down your loan terms, projected payments, actual fees, and other costs and credits. Review this paperwork carefully. If you note any large variations from the costs your lender provided in your loan estimate, ask your lender for clarification.

It's important to ask your lender any questions you may have in advance so when your settlement date arrives, you're prepared.

What to expect with refinancing

The closing process can take several hours, during which time you’ll sign a number of important documents. While each closing day differs based on situation, you can expect the following:

team of 3 people

Closings usually take place at a title company. For a refinance, it’ll be you and any co-borrowers and a closing agent in attendance.

identification documents and a photo ID

You’ll need to bring a state-issued photo ID and a cashier’s check or wire transfer to pay for outstanding items or closing costs that aren’t rolled into the loan.

an ink pen writing something

You'll be asked to review and sign several documents, including affidavits and declarations. Be sure to read all documents carefully and understand their purpose as they are legally binding.

keychain that is shaped like a house that has a single key

When everything is signed and completed, you’ll leave the office with a new loan, including a new rate and term.

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