Loan Refinance Closing Process: What to Expect

Closing is the final step in the refinancing process. Once you’ve received approval from your lender, secured a favorable interest rate, undergone a home appraisal, and passed a title search, it’s time to close.

The process of closing a mortgage refinance is like closing a home purchase. At closing, you’ll bring a set of essential documents, meet with people associated with the refinance, and sign the necessary paperwork to secure the new mortgage.

What to bring when closing a refinance

A refinance closing requires specific documents and materials. These include your driver’s license or other government-issued identification, a cashier’s check for the amount needed for closing costs, and your lender’s closing disclosure.

It is recommended that you read the Closing Disclosure for Errors or Mistakes before closing. Plus, you can use closing disclosure at closing to make sure the documents you sign match the terms and fees set by your lender. It’s essential to compare the final documents to the closing disclosure because anything you sign at closing legally binds you to the terms of the new loan.

If a number doesn’t match the closing disclosure, or you’re worried about refinancing, you can choose not to close. Although you don’t have to agree to the terms of the new loan, you will have to pay fees for services already rendered, such as a credit report or home appraisal.

Who attends a refinance close?

A refinance closing does not involve the sale or purchase of a home, so it will not involve real estate agents. Instead, the parties responsible for and involved in the refinancing attend the closing. Everyone on the loan must be present, as well as an employee of the title company and possibly a witness, depending on your state.

If you cannot attend the closing, you can appoint someone to replace you. This option allows you to close without your presence being a problem.

How long does a refinance take to close?

Most refinances are closed within 30-45 days of your first request. The process on closing day is not as complex as on closing day when you first bought your home, so you should expect it to take around half an hour. That said, there’s no need to rush to close, and it’s a good idea to take the time you need and ask any questions you have about refinancing.

After signing the documents at closing, you have a grace period of three business days to opt out of the refinance or request a change. The Truth in Lending Act ensures that your lender gives you this grace period in case you are not comfortable with the new loan or your circumstances change.