Reminders for Refinance Borrowers
Contact us with your payoff information. If you will be paying off a mortgage on your property at closing, we will need to obtain from you the name and contact information for your lender including the loan number. You should continue to make mortgage payments that come due prior to or near the date of closing so that you are not penalized in the event that closing does not take place on the expected date. You may want to consider making your payment at least two weeks prior to closing in order for the payment to be posted to your account and reflect on your lender’s payoff statement. Any overpayments made to your current lender or funds held in escrow for taxes or insurance will be refunded to you directly from them in approximately 3-6 weeks following payoff of your loan.
If you are paying off an FHA loan, keep in mind that the payoff funds must be received by the lender on or before the first of the month in order to avoid having to pay another month’s interest. For this reason, your closing should be scheduled no later than the third week of the month to allow sufficient time to get the payoff check to the lender by the first of the next month.
Coordinate with your FireSide Settlement processor to schedule the closing date and time.
Arrange for preparation of a Power of Attorney if you will be unable to attend closing on the day scheduled and want to have a family member or friend sign documents on your behalf. You should inform a member of our staff as soon as possible so that arrangements can be made for you to sign a Power of Attorney and certain other documents ahead of time.
Obtain a hazard/homeowner’s insurance policy showing the lender as the mortgagee on the policy. Arrange for the lender to receive the policy before the date of settlement. Lenders do not require a homeowner’s policy for condominiums and will usually accept a Certificate of Insurance on the building as proof of insurance. Please make sure they receive this before the date of settlement.
Obtain a cashier’s or certified check for the estimated amount due, if you expect to need funds at settlement for your closing costs. Please make your check payable to “FireSide Settlement & Title Services, Inc.” Any difference may be paid by personal check; any excess will be refunded to you at the time of closing. If you prefer to electronically wire funds to us from your bank, you can request wiring instructions from your Settlement Processor.
If you are expecting to receive cash out from your refinance or equity line of credit and the loan is secured by your principal residence, keep in mind that federal law requires that you have a three business day waiting period following the date of closing so that you may chose to cancel the loan if needed. For this reason, any cash-out proceeds from your refinance will not be available to you until after this period has expired. In addition, if your property is located in Virginia or the District of Columbia, your proceeds will not be available to you until certain loan documents have been recorded in the appropriate jurisdiction.