When you refinanced, did you use an attorney?

[BlahBlahYouToo]

Just received a commitment and there's a lot of legal jargon in there that I mostly understand.
One section stated that I should have an attorney that represents the interest of the borrower.

It costed me $800 when I first closed for an attorney but there was a lot more involved.

 

[vi edit]

I've sold three houses, bought three, refinanced twice, bought one piece of property and did a construction loan without ever using an attourney.

*shrug*

 

[Binarycow]

we all use an attorney one way or another when we buy/sell a house right? We have to pay them hundreds of dollars to research and make sure the ownership of that piece of property and the lot of the property itself are proper. Also they make sure all paperwork filed are correctly filed.

 

[s1175290]

If you are doing a refi on your primary residence, don't bother with an attorney. You will have a federal right of rescission in the event there are any issues:

http://www.bankrate.com/brm/news/loan/20040212a1.asp

Essentially you could show up at closing, sign the documents, and still cancel the loan (and receive a full refund of any money paid) with in three days of signing. This does not apply to purchase loans, as well as some other scenarios. In those cases, it might make sense to hire an attorney, but I would highly recommend saving the money on a refi if you are talking about your primary residence.

 

[LurkerPrime]

I just refinanced about a week ago. in Georgia at least, an attorney is required, but that attorney represents the bank and not you(you still pay for it though), unless you hire a seperate (unneeded) attorney. The banks attorney will go through all the legal documents with you and answer any questions you may have about the documents you're signing. The only down side is that they can't offer you any legal advice, since they are representing the bank and not you.

 

[vi edit]

we all use an attorney one way or another when we buy/sell a house right? We have to pay them hundreds of dollars to research and make sure the ownership of that piece of property and the lot of the property itself are proper. Also they make sure all paperwork filed are correctly filed.

That's mostly title insurance which is a fucking joke in the case of a re-fi. But hey, they'll gladly charge your $400-$1200 to tell you the bank owns the title.

 

[BlahBlahYouToo]

very informative. thanks fellas.

 

[krunchykrome]

Just received a commitment and there's a lot of legal jargon in there that I mostly understand.
One section stated that I should have an attorney that represents the interest of the borrower.

It costed me $800 when I first closed for an attorney but there was a lot more involved.

I didn't have an attorney present. I read everything; everything made sense. I don't think it's necessary.

 

[PricklyPete]

You have to in the state of SC.

 

[s1175290]

You have to in the state of SC.

Certain states define the closing of a mortgage as the practice of law, and thus require an attorney to actually close the loan. Whatever this attorney is paid should be part of the quoted closing costs. As mentioned before, this attorney represents the bank only.

I believe what the OP is referring to is an attorney that would solely represent his interest. This would be additional money, and it likely would not be worth while.

At the end of the day, the items you are concerned about are:

-Note Rate
-Loan Amount
-Type of mortgage (fixed, adjustable, etc)
-Is there any pre-payment penalty
-How much are the total CLOSING COSTS on the final HUD (settlement statement) - this does not include any prepaid interest or escrow items

It should be pretty easy to find this information in the closing documents, but if you can't, ask the closing agent (attorney or title company rep, depending on your state) and they should be able to easily point out these items.

 

[highland145]

You have to in the state of SC.

And a few hundred for a** covering on thousands is prudent, imo.


Pete, how's the heat in G-ville? 91 here feels like 111.

 

[IHateMyJob2004]

Use the same attorney, they already did things like the title search once. They should not charge to do it again. You can cut costs but you need an attorney.

 

[IHateMyJob2004]

That's mostly title insurance which is a fucking joke in the case of a re-fi. But hey, they'll gladly charge your $400-$1200 to tell you the bank owns the title.

Someone failed at the title search knowledge. Alot of people in Grand Island NY (granted this is sort of a grey area) think you are an idiot.

 

[MotionMan]

Sort of: I just refinanced and I am a real estate attorney.

Some states require the use of an attorney for real estate transactions, some do not. In California, it is very rare to use an attorney for a home purchase or refinance (though it does happen).

MotionMan

 

[blackdogdeek]

our lender sent us a refinance kit. we just filled out all the paperwork, got a couple of pages notarized, then mailed it back.

 

[vi edit]

Someone failed at the title search knowledge. Alot of people in Grand Island NY (granted this is sort of a grey area) think you are an idiot.

I'm talking more along the lines of I buy a house and finance through a local credit union. Part of that mortgage includes a title insurance that you pay $400-$1200 for.

Then 5 years later the rates drop a couple percent and I want to refi with that same bank.

Gotta pay a title search & insurance again on the same freaking property.

 

[s1175290]

I'm talking more along the lines of I buy a house and finance through a local credit union. Part of that mortgage includes a title insurance that you pay $400-$1200 for.

Then 5 years later the rates drop a couple percent and I want to refi with that same bank.

Gotta pay a title search & insurance again on the same freaking property.

You need AT LEAST a limited title search, even with the same bank and title company. They have no idea if you have taken out a second mortgage or have had any other liens recorded in the last five years.

Theoretically, if it is the same lender and title company, you should receive a substantial discount on title insurance for a refi. If not, you are probably working with the wrong lender

 

[vi edit]

Theoretically, if it is the same lender and title company, you should receive a substantial discount on title insurance for a refi. If not, you are probably working with the wrong lender

Yeh, there's a discount but it's still a couple hundred bucks. It's just frustrating the number nickel and dime fees you have to pay. The one that really gets me now is the latest by the government. There's now some additional $75(ish) "Anti-predatory" fee that you have to pay so that the government can tell you that you aren't being fleeced by a "predatory lendor". Can't waive it.

Thanks Uncle Sam for protecting me from myself! And I had to pay for it.