Home Refinancing Services
Northern Virginia Home Refinancing
When you want to refinance a home, District Title has the expertise to assist throughout the entire process.
Importance of a Title Search During a Refinance
Whether it has been 5 months or 20 years since you purchased your home, if you want your refinance to go through, your lender is likely going to require a new title search. But, why?
District Title will research the title to the property since the lender wants assurance that the loan applicant is the legal owner of the property. The lender also wants to know whether there are any problems with the title. Even if the title was researched for the initial mortgage, the lender wants to know if any changes have occurred in the title since that time. Remember, a title search looks for any defects in the title that could raise red flags for the lender. They want to feel confident that the loan they provide to you is in the first lienholder position. That way, should something happen, they feel confident that their loan is protected and their risk is reduced. This title search looks to ensure that there are no liens or judgments that have been attached to the property or anything that can cloud up the title.
All of this is an important part of protection for the lender.
Title Clearance and the Settlement Statement
Any outstanding debt that is found attached to the property will need to be addressed before the title can be cleared and the closing can happen. This includes the current mortgage, outstanding taxes, judgments, liens, and so forth. The title to the property needs to be clear of any encumbrances for the refinance to move forward.
To make the process move smoothly, the closing agents at District Title will contact lenders to determine the amount required to pay off existing mortgages. The closer might also communicate with the property owner, attorneys, or creditors who are working to resolve title issues before the refinancing occurs.
Finally, our closing agents will prepare a settlement statement that lists all of the bills that will be paid from the loan proceeds and the amount that will be disbursed to the borrower. At the closing, the borrower signs the settlement statement and refinancing documents, including a new promissory note and mortgage. Our closer then delivers the mortgage to the county recorder’s office.
Why District Title?
At District Title, you get professionals who have decades of experience providing exceptional title services to clients. With our title services, you benefit from:
One of the top-ranked title companies in the DC area
A diverse group of real estate experts
Streamlined processes for a quick response
Commitment to providing a smooth closing experience
Safe, secure communication
A convenient, innovative solution to your title needs
What does a title company do? Do I really need one?While you don’t need one and you are not legally required to do so, having a title company on your side as you purchase real estate or refinance your property can be highly beneficial. Title companies provide title insurance after a thorough title search, draw up all the documents, handle the escrow account, facilitate the closing, record the signed documents and title, and so much more. At District Title, we provide many services to ensure a smooth and easy process - all the way through closing.
What are the benefits of using a title company?Title companies can offer many benefits. Perhaps one of the most important is title insurance. Without it, you could be leaving yourself at risk should any title defects arise.
What is the difference between a lender’s title insurance policy and an owner’s policy?A lender’s policy and an owner’s policy are two different types of title insurance. Although they are both created to protect any title defects, it is who they protect that is different. A lender’s policy protects the financial interest of the lender. It is good for the value of the mortgage, decreasing as the mortgage is paid or refinanced. Once the loan is satisfied, the lender’s policy will no longer be effective. An owner’s policy protects you - the new owner of the property. It ensures that should any unforeseen issues arise pertaining to the title of the property, you are protected financially and with a legal defense. This owner’s policy remains in effect as long as you have an interest in the property.
Is title insurance required for buyers?Title insurance is often required by lenders. They want you to purchase a lender’s policy to protect both their financial interest in the property as well as their lien position. As for your own protection with an owner’s title insurance policy, it is not required though highly recommended.
Is title insurance necessary for a refinance?Because a lender’s policy is good for the value of the loan, refinancing means purchasing another lender’s policy. This will be for the new loan amount and will, again, be in place until the loan is satisfied.
What happens if I don’t have title insurance?Not having title insurance can leave you vulnerable to defects in the title. These can include: - Judgments and liens - Tax liens - Public records/ recording errors - Encroachment with neighbors - Clerical errors or omissions - Easements - Conflicting wills - Fraud and/or forgery - Missing heirs Should you face any of these issues (or similar situations) you may find yourself with a lot of headaches and a potentially costly battle.
How can I learn more about District Title’s services?If you are looking for a full-service title company that can offer you convenience and professionalism, as well as a smooth and efficient closing process, then look no further than District Title. Contact our office at 202-518-9300. Or, if you are ready, you can order titles on our website any time, day or night.