There are various reasons for a homeowner to refinance a home. Perhaps the current interest rate is more attractive than the rate on the original mortgage. Perhaps you have two mortgages, and you want to combine these into one.
Once you have chosen a lender for your new mortgage, the lender will appoint an attorney to help prepare the closing documents and to conduct the closing. You may be able to request which attorney you would like to work with. The lender will review the proposed mortgage with their underwriter and determine whether they can approve the loan.
To prepare for the closing, the attorney reviews the title to the property in order to provide the lender with a title certificate and a title insurance policy. The attorney also gathers the payoff information for the current mortgage(s) and the current real estate tax status.
When the lender is ready to move forward, a “Closing Disclosure” is prepared, detailing all the costs involved, and this is provided to the borrower prior to closing. There is a three-day waiting period (right of rescission) after the closing before the attorney can record the mortgage instrument at the Registry of Deeds and the lender provides the funding.