Your Step-by-Step Guide to Refinancing Your Mortgage with Deeded
Refinancing your mortgage can be a great way to secure better terms and consolidate debts. At Deeded, we make the refinancing process straightforward and transparent, guiding you every step of the way. Here’s how it works:
Step 1: Complete Our Client Information Form
To start the process, we’ll need to gather some essential documents from you:
- Current Mortgage Statement: This shows your outstanding mortgage balance.
- Current Debt Statements: Statements for any debts that will be paid off through the refinancing.
- Home Insurance Policy: Your updated policy, with the new lender listed as the Loss Payee.
- Recent Property Tax Statement: Ensure your taxes are up-to-date.
- Void Cheque: Required for automatic mortgage payments and direct deposit of proceeds.
Step 2: Confirm Your Signing Appointment
Once your documents are in place, we’ll schedule your signing appointment. This will typically happen 2-3 days before your closing date. We use secure video conferencing technology, so all you need is a computer or tablet with a webcam and a high-speed internet connection.
Step 3: Obtain Home Insurance
Your new lender will require that you have updated home insurance. This policy must list them as the Loss Payee. After securing insurance, send us the proof (insurance binder) to proceed.
Step 4: Mortgage Instructions
Mortgage instructions are the documents that outline the conditions by which your new lender agrees to fund your mortgage. We’ll review these to ensure everything is in place.
Step 5: Closing Day
On closing day, the proceeds from your new lender will be wired into our trust account. We’ll use these funds to pay off your existing mortgage, cover any debts, and handle legal fees. Any remaining funds will be deposited into your account. Finally, we’ll discharge your old mortgage and register your new one with the new lender.
Mortgage Refinancing FAQ
1. Do You Need a Real Estate Lawyer to Refinance?
Although not legally required, hiring a real estate lawyer can provide important benefits. Once your refinancing is approved, a lawyer can assist in managing the legal details, including reviewing documents and ensuring regulatory compliance. At Deeded, we connect you with skilled professionals to make the process straightforward and transparent. Learn more about the importance of legal support for refinancing here.
2. Where To Refinance My Mortgage?
Refinancing your mortgage can be done through your current lender or with a new one, depending on your financial goals. Many homeowners choose to refinance with a new lender to secure better rates or terms. At Deeded, we make refinancing easy by connecting you to lawyers and specialists to ensure a seamless process, whether you’re refinancing with your current lender or switching to a new one.
3. Why Refinance a Mortgage?
Refinancing a mortgage can offer several benefits, such as lowering your interest rate, consolidating debt, or accessing equity for home improvements or other needs. By refinancing, you may be able to save money over the life of your loan or reduce your monthly payments. Explore the potential benefits of refinancing further here.
4. How Much Does a Mortgage Refinancing Cost?
The cost of refinancing a mortgage varies depending on several factors, including the lender’s fees, legal fees, and any penalties for early repayment. While some fees are unavoidable, working with a trusted service like Deeded can help reduce unnecessary costs and streamline the process. To get a better idea of the costs involved, check out our blog on closing costs for refinancing. Deeded's mortgage refinancing starts at $999.
5. What Documents Are Required for Refinancing?
When refinancing your mortgage, you’ll need to gather several important documents, including your current mortgage statement, debt statements, updated home insurance policy, property tax statement, and a void cheque. These documents ensure that the refinancing process goes smoothly and that your new lender has all the necessary information.
6. How Long Does the Mortgage Refinancing Process Take?
The refinancing process typically takes 5-7 business days, depending on the complexity of your situation and the responsiveness of all parties involved. At Deeded, we work to expedite the process and keep you informed at every stage, from document submission to closing day.
7. Can I Refinance if I Have Bad Credit?
Refinancing with bad credit can be challenging, but it is still possible. Many lenders offer refinancing options for those with less-than-perfect credit, although the terms may not be as favorable. If you’re concerned about your credit, it’s a good idea to speak with a mortgage broker to explore the best refinancing options available to you.
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