Do You Go to a Closing Meeting When You Refinance a Home Loan?

Mortgage loans typically have a lengthy repayment term which can be anywhere from 15 to 30 years. During this time, you might consider a refinance loan. Home owners often choose to refinance their home loans in order to get a better interest rate. Even though a refinance loan differs from a regular mortgage loan, the application and approval process are quite similar. To finalize everything, you attend a closing meeting just like you did for the original loan.

Refinancing Basics

A refinance loan is a completely new loan that functions to pay off the existing mortgage loan. Once the transaction is complete, the original mortgage is considered paid in full or satisfied. You will then begin to make the monthly mortgage payments toward the refinance loan as outlined in the terms. A refinance loan might suit your needs if you want to obtain a lower interest rate, extend the repayment term or get extra cash through a cash-out refinance.

Application Process

Once you've decided to refinance your home loan, you must apply with a bank or lender. Your current lender might have an offer that suits your needs, but you might need to shop around for a better option. Applying for a refinance loan is similar to the process you went through when you got the original mortgage loan. You need to complete the lender's specific application form, after which the lender will likely ask you to submit documents to support your annual income. The application then goes through the underwriting process for approval. An appraisal of your property to determine it's value will also be required .


Once the loan application is approved, the lender will contact you to set up a closing meeting. At the closing, you will meet with a closing agent to sign the loan documents. These include the promissory note and security instrument. Some documents -- such as the security instrument -- must be notarized, so a notary public will also be at the closing. You should take your photo ID to the closing for the notary. The closing costs are due at this time. A cashier's check is commonly accepted as the form of payment.

Power of Attorney

If you are unable to attend the closing meeting, you can designate someone to act on your behalf to sign the closing documents. Before the closing meeting, you will need to have the power of attorney document prepared by an attorney. You can grant the person you choose specific powers -- such as being allowed to sign loan documents only. A person with power of attorney who signs the documents for you will sign his own name with "power of attorney" printed next to it.


About the Author

Mallory Malesky has been writing business, finance and general knowledge articles since 2008. In her daily life, she works in corporate product management. Malesky holds a Bachelor of Science in natural science from Indiana University of Pennsylvania.