Homeowners make a number a number of costly mistakes when refinancing their mortgages right up to closing day. Here are three tips to help you avoid costly mistakes at the closing table.
When closing on your new mortgage always schedule your closing at 9am in the title company’s office. It is important to close early in the day in case there are any mistakes that need to be corrected prior to the close of business. If you schedule your closing late in the day there is the possibility you could be signing documents with errors and not have anyone present to correct them.
Let the representative from your mortgage loan originator know that you want to review the HUD1 closing statement the day before your closing date. The Real Estate Settlement Procedures Act (RESPA) stipulates that you can review this document one day before closing on the mortgage. Most of the charges on the HUD1 statement should be identical the charges listed on your Good Faith Estimate.
Compare the HUD1 statement and the Good Faith Estimate line by line to make sure nothing has slipped in. If there are significant changes or charges that were not listed on the Good Faith Estimate question your lender about the changes.
You can learn more about refinancing your mortgage and avoiding common homeowner mistakes by registering for our free mortgage guidebook: “Five Things You Need to Know before Refinancing Your Mortgage.”
My name is Rob Regehr and I’m a personal finance writer with a chip on my shoulder for banks and brokers that take advantage of my friends and neighbors.
