WHAT ARE THE TITLE COMPANY’S RESPONSIBILITIES?
A title company’s responsibilities may vary from one situation to another.
Again, when you refinance a mortgage, even if you do so through the same lender you initially worked with, the lender will often hire a title company to conduct research. Their goal is to confirm that an applicant is truly the legal property owner.
This process may also reveal information that a lender might find relevant. For instance, through a title search, a lender might discover the property owner has had a judgment filed against them. The lender could require the owner to pay the judgment before they can begin the refinancing process.
Title companies are also commonly involved in the closing. When a lender has reached an agreement with a property owner and is ready to provide them with a loan, a title company prepares the settlement statement. This document explains how loan funds will be disbursed to the borrower. It also lists how the funds will be used. For instance, if a loan is being issued for the payment of several bills, the settlement statement will list them accordingly.
Sometimes the title company is involved in the disbursement of funds as well. There are instances when a lender will provide the agreed-upon loan to the title company instead of directly to the borrower which often happens when the settlement statement include additional parties besides the borrower who are also entitled to payment.
In general, the title company may also serve as a sort of liaison between the various parties involved in a refinancing. These can include not only borrowers and lenders, but attorneys, surveyors, government employees, and more. Because a refinancing can involve many steps, with many issues to resolve before closing can occur, it helps to have an intermediary who works with everyone to move the process along smoothly.
That’s one of the primary reasons for working with a title company during refinancing is beneficial to all parties involved. By assisting in key steps and coordinating with various organizations and individuals, title companies help to make refinancing more efficient.
That’s our goal at Bay National Title Company. After all, we understand that refinancing a home can seem like a lengthy and overwhelming process. Every step of the way, we work with all relevant parties to help make it easier. To discover more about what we can do for you, contact us today.
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