Q:
What
are closing costs?
A:
“Closing costs”
is the term used to refer to the various fees and expenses
charged by the lender of a mortgage related to the purchase,
sale, or refinance of a home. Closing costs may include such
things as pre-paid interest, appraisal fees, title examination
expenses, credit report fees, underwriting fees, legal fees,
title insurance premiums, recording costs, etc.
Q:
How much are closing costs for a refinance?
A: The amount for closing costs
varies from lender to lender. You should receive a Settlement
Statement at the closing, which itemizes all charges. You will
be able to review the amounts, and address any issues that arise
with the lender’s
counsel.
Q:
What should I bring to a closing?
A: You will need to bring a
government issued photo i.d. (most commonly a Massachusetts
Drivers License), a copy of your homeowners’
insurance binder, and a certified, cashiers’
check for any amount that is due from you. There may be other
items that are required, and our office will contact you prior
to the closing to request all necessary items.
Q:
How long does a closing take?
A: Each lender will have a certain
number of forms that must be signed by the borrower. Therefore,
the length of the closing depends on how long it takes for the
borrower to review and sign the forms required by the Lender.
Under normal circumstances, a closing for a refinance should
take approximately one hour.
Q: What is a
rescission period?
A: Under federal law, a borrower
who is refinancing his or her primary residence is required to
have a three day rescission period. During this time the
Borrower may elect to cancel the loan for any reason at no cost.
No funds are allowed to be disbursed prior to the completion of
the three day rescission period. |
