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