Key Factors to Consider During Mortgage Refinancing

1. Key Factors to Consider During Mortgage Refinancing

2. Although some homeowners purchase their properties in cash, most rely on some form of mortgage loan to spread out the impact of such a large purchase over an extended time. Over the course of a mortgage’s lifetime, homeowners may decide to modify the arrangement by refinancing, or taking advantage of a new loan to replace the original one. Homeowners may refinance to take advantage of lower interest rates, adjust the length of their loan term, or even access the value of their home’s equity in cash.

3. While homeowners may choose to handle this process independently, complications can arise. Experienced legal representation—such as working with property lawyers in Edmonton—can potentially benefit homeowners and help protect their interests during this process. Let’s take a quick look at some of the key facts to know. About the Documents You’ll Need Applying for refinancing is very similar to the process of applying for a mortgage in the first place. With that in mind, you’ll need to gather the appropriate documentation to submit to the lenders who will consider your refinancing application. Necessary paperwork you should have on hand includes:

4. Information relating to your current mortgage, such as the loan agreement and related materials; Proof of income to support the loan payments; Proof of employment to demonstrate a steady income; A thorough accounting of the homeowner’s assets and financial health; and Documents related to taxes. ● ● ● ● ●

5. Because there are numerous legal documents involved in the refinancing process, keeping track of everything can be challenging. A lawyer experienced with refinancing—such as real estate lawyers in Edmonton—can support the gathering of your papers while ensuring everything is in proper order to facilitate a strong refinancing application. Understanding Potential Title Transfer Issues When you refinance a mortgage, the loan typically (but not always) transfers to another financial institution. The title for the property, held by the original lender, must also transfer to the new lender. However, some problems could complicate the transfer and delay refinancing, or even lead to the rejection of an application. Some of these issues include:

6. Liens against the property; Legal judgments; Documentation with errors, such as typos or missing data; Issues related to estate administration, if the property was part of an inheritance; and Difficulty with adding or removing an individual from the title. ● ● ● ● ● In each case, legal support can help homeowners navigate their way towards a prompt resolution of these concerns, from correcting documentation to uncovering the steps necessary to resolve a lien or satisfy a judgment. Property lawyers in Edmonton are particularly well-versed in managing these title transfer issues.

7. Preparing for Potential Complications Aside from title issues, other areas of concern may arise during the refinancing application process. Incomplete applications that lack all necessary documentation or required information may result in denials, prolonging the time it takes to obtain proper refinancing. For another example, some mortgage lenders may apply penalties to early payoff payments to compensate for lost interest. These penalties can impact the value of your refinancing and potentially increase the mortgage debt load. Similarly, not all refinancing offers are fair and in the homeowner’s best interests, either. Some terms may appear sound on the surface, but ultimately lead to increased costs or other burdens on the homeowner.

8. Connect With Lawyers to Review Your Refinancing Opportunity When considered carefully, refinancing a home’s mortgage can offer homeowners value, peace of mind, and additional flexibility. However, the complex documentation and application process, combined with potential complications, can make this effort more challenging to navigate than homeowners may anticipate. At Lypkie Henderson, the legal support we provide—through skilled real estate lawyers in Edmonton—can simplify this matter, ensuring a smoother and less stressful experience that keeps your best interests at the forefront throughout. For more information on next steps, contact our offices today.