If You Are Refinancing Real Estate With A Mortgage From A Lender We Represent, Please Read The Following Information

As you know, our office represents your lender in the mortgage loan you have applied for to refinance your property. We have commenced an examination of the title and ordered tax information from the Collector of Taxes for the lender's records. When these items are completed and reviewed by our staff, we will notify you to arrange a convenient time to close the loan. We will also advise you of any funds you may need to complete the transaction. You must bring A BANK CASHIER'S CHECK made payable to yourself for these funds. In addition, you must bring with you to closing a valid drivers license or passport for proper identification. We cannot close your transaction without the same. Please do not forget, as this is very important.

Please review the Lender's commitment letter carefully. If special conditions are required, they must be met to the satisfaction of your lender prior to closing.

Please review the following instructions with respect to additional requirements that must be met prior to closing. Respond to each item applicable to your situation either on this web site or in writing. If you have any questions or comments relative to the loan transaction, please do not hesitate to contact us by telephone or by e-mail.

  • 1. Mortgages.

    If your property is presently mortgaged, the mortgage(s) will be paid off at the time of closing using proceeds from the refinance. Please provide information regarding this mortgage, as well as equity mortgages, in the fill-in form on this site in order that we may contact the mortgagee(s) and make the necessary arrangements for payment. This is very important and requires your immediate attention. After your mortgages have been paid in full, the banks will send us discharges which we will record at the Registry of Deeds.

    In the event there is a non-institutional mortgage (i.e. one given to a private individual, trust or corporation as opposed to a bank or loan company), we will require that the payoff amount be furnished to us before the closing and a discharge be delivered at or before the closing. UNFORTUNATELY, THERE CAN BE NO EXCEPTION IN THIS REGARD. If you are uncertain about whether an outstanding loan is held by a private lender, please contact our office or have your attorney do so. The obligation to furnish a discharge at closing applies also to outstanding attachments or other liens, if any.

    If you have a home equity line of credit, it is imperative that you notify the lender in writing to freeze the account immediately. If you are not paying off the home equity line of credit but are keeping it and it is being subordinated to the new first mortgage loan, we must have a subordination agreement from the home equity lender prior to the date of closing. In most cases, your loan officer or loan processor will help you obtain this subordination agreement.

  • 2. Insurance.

    You must provide us with proof of fire and extended coverage in an amount at least equal to the total of all outstanding mortgages on the property or 100% of the replacement cost of all insurable buildings and other improvements on the land, whichever is less. IF YOU ARE GOING TO RELY ON THE 100% REPLACEMENT COST AMOUNT AS SUFFICIENT INSURANCE, THEN THE POLICY OR BINDER MUST STATE THAT 100% REPLACEMENT COST IS IN EFFECT. (b) If the property is a single-family residence, you must provide an insurance binder. If the property is a condominium unit, you must provide a certificate of insurance. The binder or certificate must name all of the persons who will hold title to the property. (c) The mortgage clause adding the mortgagee s insurable interest to all policies MUST BE WORDED in accordance with the instructions listed in your commitment letter issued by your lender. IT IS IMPERATIVE THAT THE ABOVE LANGUAGE IS ON YOUR INSURANCE BINDER OR CERTIFICATE. Your insurance agent MUST fax or deliver to our office a copy of a binder for such insurance along with a receipt showing that the premium is paid in full at least five (5) business days prior to closing.

  • 3. Flood Insurance.

    If the premises is located within a specially designated federal (HUD) flood hazard area (Zone A) then flood insurance is a mandatory requirement and you must provide a flood insurance policy application together with a paid receipt for the full first year s premium at or before the closing. Please note that if the premises is located within zone B, flood insurance is not required although it is highly recommended.

  • 4. Rent Loss Insurance.

    If this transaction involves a loan on investment premises then rent loss insurance may be required and an appropriate binder to that effect will be required at or prior to closing. You should check with the Lender for applicability of rent loss insurance to you.

  • 5. Title Insurance.

    A lender s policy of title insurance is required for this transaction and we will obtain it at your expense.

  • 6. Title Examination.

    Please note that if as the result of searching the title we discover that there are any deficiencies or defects, they are not our responsibility to correct. We will require the owner of the property or their attorney to clear such matters before we can proceed to close the transaction.

  • 7. Expenses.

    You will be required to pay recording fees to discharge mortgages and other liens, applicable overnight delivery charges, costs associated with obtaining tax information and any applicable discharge tracking fees. Where appropriate, these items will be paid directly from the proceeds of the refinance; otherwise you must bring a check to closing as stated above.

  • 8. Closing.

    You should be aware that most lenders require 72 hours notice in advance of the day of closing to prepare the loan papers and to obtain the funds. When applicable, there is no exception to this requirement, and it is therefore incumbent upon you to coordinate scheduling the closing and provide us with mortgage payoff and insurance information in a timely manner.

  • 9. Right of Rescission.

    If you are refinancing a primary residence, there is a three day right of rescission and you have the right to cancel the transaction up until midnight of the third business day after the date you signed the documents. Most lenders do count Saturdays as business days. If your transaction is a cash-out refinance, your loan proceeds will not be available to you until the rescission period has passed and the mortgage has been recorded at the appropriate registry of deeds.