When you refinance your mortgage, the title company performs a new title search on the property to ensure there are no outstanding liens, judgments, or encumbrances on the title. They then issue a new title insurance policy to protect the new lender’s interests. The title company also handles the closing process, document preparation, and disbursement of funds from the new loan to pay off the existing mortgage.
An escrow account is a neutral third-party account where all funds, documents, and paperwork related to a real estate transaction are held until the deal is complete. The escrow company manages this account and ensures all conditions are met before disbursing money to the appropriate parties at closing.
The typical refinance process usually takes around 30-45 days from application to closing. However, the specific timeline can vary based on a few key factors:
- Type of refinance (rate/term, cash-out, etc.)
- Lender’s turnaround times
- Borrower’s responsiveness in providing documentation
- Title search and underwriting process
- Resolution of any title defects or liens discovered