Loan refinances are often touted as a simple and low-cost way to access the equity in your home or to lower payments or interest rates. Refinancing your home can be advantageous to your budget and long-term financial help. While not as complex as the initial purchase of your home, there is still a closing process, and you want the best professionals available to manage your transaction.
When purchasing a home, most buyers have a Real Estate Professional at their side. That agent will manage problems, direct the transaction, and represent the best interests of their client. When you refinance, you don’t have that support. The only resource available to make sure your transaction goes smoothly is your Title Agent. If you had a great experience with your original title company, there are advantages to using that same company for your refinance.
Communication Hub
Title Agents tend to be top-notch communicators. They often manage the relationship between clients and the lenders, making it easy for the borrowers. Closing Agents might contact lenders to secure an accurate payoff amount of the original loan. If there are any new title issues with the property, the Title Agent may facilitate communication between the property owner, attorneys, government officials, surveyors, and creditors. Lenders require a clean title for refinanced loans and any issues with title must be resolved before the refinance can close. Having a Title Agent you trust is invaluable when there are bumps in the road.
Closing Procedures
Most refinanced loans will require a closing during which the borrower signs documents and the Title Agent disburses funds. The Title Agent will also ensure that you have a new Lender’s Title Insurance policy to cover the new loan amount. If you purchased Owner’s Title Insurance when you purchased the home, that policy stays in effect even if you change lenders.
Familiar Service
You already had a successful closing with your original closing company. You know the level of professionalism that you will receive, and you may even have a good relationship with the Title Agent. Title professionals work a bit more “behind the scenes” than Realtors, yet it is the Title Agent who ensures all those closing documents are legal and accurate. Working with someone who has performed well for you before can give you peace of mind, which is priceless.