refinance - how does closing work? (insurance, loan officer, approved, fees)

[anna_mom]

Hi
I need some help....

We applied refinancing using our existing house which has already been paid for. We went through Wells Fargo, and was told at the beginning of the week that it was approved and should close at the end of the week.

We waited and communicated the loan officer. We have been checking the exact time of closing and expecting that we would go up Wells Fargo's office.
Then today, they forwarded our mail to a person in the title company, then the woman told us that she will come to our house tomorrow for closing...
We didn't think too much about it, then after we got home, we realized that the person is really from a title company (the email address is not associated with Wells Fargo), therefore what should we expect ?? it is after 5:00 pm here and I can't find anyone to check...Will she ask us to transfer the title? Will Wells Fargo gave her the check to bring to us? Why would Wells Fargo trust them for a check? I am really nervous now..

Is this a normal process? We refinance to buy another house, we have not thought about hiring an attorney for refinancing...

[Okey Dokie]

I have bought 6 houses in Kansas, Missouri and Oklahoma and every single one of them (plus many refinancings) were handled by a title company.

You'll sign papers relative to the mortgage plus about a foot-high stack of papers now required by govt. regulations.

The title company will file the mortgage document at your county courthouse and then you'll get your check for the mortgage, less any fees/deductions etc. which will be explained at the time you sign the paperwork.

The ownership of your property isn't changing. You're just having a mortgage placed against it.

As you've described it, it all sounds perfectly normal to me.

[sj08054]

That's the normal process. They did send you a HUD-1 correct?

Don't worry.. you still have 3 days recission period after you sign.

[anna_mom]

Thanks. I can sleep tonight :-)

what is HUD-1?
I received a commitment letter though.
How do they send me the check? by mail? Normally how long does it take?

[anna_mom]

I have another question, hope someone can help...

We locked in our rate to be 3.5%, my understanding is that the rate was in record low last week, but the loan officer refused to change the rate for us... in Wells Fargo website, the rate shows 3.25 with 1 point, apparently we don't have to pay point. Fair??

[VictorBurek]

You locked in your rate...once you do that you cant expect the lender to lower it if rates decline further.

What if you locked in and rates rose...would you want your lender to contact you to say they are increasing your rate?

If you locked at 3.5 with no point..but can get 3.25 with a point...the 3.5 with no point is the better deal.

[anna_mom]

Originally Posted by VictorBurek

You locked in your rate...once you do that you cant expect the lender to lower it if rates decline further.

What if you locked in and rates rose...would you want your lender to contact you to say they are increasing your rate?

If you locked at 3.5 with no point..but can get 3.25 with a point...the 3.5 with no point is the better deal.

thanks

[FalconheadWest]

Where did you close when you bought the house? Was it not at a title company? The process of refinancing is the same as when you buy, except they don't usually come to your house, you go to their office.

[pghquest]

Originally Posted by Okey Dokie

I have bought 6 houses in Kansas, Missouri and Oklahoma and every single one of them (plus many refinancings) were handled by a title company.

I've had refinances that did not involve title companies, I simply went to the local bank branch office and signed papes.

I've also had puchases that didnt involve them either, I simply received a quick claim deed and wrote a check.

The title companies usually get involved when you are dealing with banks and require title insurance.

Not stating this to argue with you, just showing that one isnt required all the time..