How a Title Company Helps Loan Officers When a Client is Refinancing a Home

Why a Title Company is Needed When Refinancing a Home

Purchasing a house is one of the biggest financial decisions your client can make. But even after they sign all of the necessary paperwork to claim ownership, they may have more critical financial decisions to make in the future. For instance, they may choose to refinance the mortgage on their home. Just like every other part of the refinancing process, selecting the right title company matters.

What Does a Title Company Do for the Refinancing Process?

Title companies play a significant role during a home refinancing process. During this process, the title company involved takes care of the title research, facilitates communication between all parties involved, and ensures a title is “clean.” As a loan officer, you need to know if you’re working with the right title company for the job for a smooth refinancing experience with your client.

Research the Title to the PropertyImage of a person holding a model of a house

When refinancing a mortgage for your client’s home, you need to find a title company to conduct the property title research. This step is to ensure that a refinancing applicant is the true owner of the property and that there are no other problems with the title.

An experienced title company will have the necessary skill to conduct thorough research and ensure that the property is indeed your client’s and clean. The right title company for the job will pay attention to detail, so the refinancing process moves along efficiently.

Helps Facilitate the Line of Communication Between All Parties

The title company acts as the contact for all parties involved in a refinancing. The title company keeps in touch with the property owner and lender throughout the process. Along with this responsibility, the title company also gathers and organizes documents needed for refinancing.

A quality title company will keep the loan officer in the loop during the process and answer any questions.

Ensures a “Clean” TitleThree people shaking hands in agreement

Before refinancing can be completed, it is imperative to make sure the property title is clean. “Clean” means that there are no new issues with the property or any other title problems. Some problems may include:

  • Outstanding mortgages
  • Liens
  • Unpaid taxes
  • Judgments

If any of these issues remain, then the refinancing of a home cannot be completed. The title company must also notify the bank with any changes to the title since its purchase. The role of the title company is to be able to detect and effectively communicate the issues to all parties before continuing with the refinancing.

How to Find the Right Title Company for the Job

The right title company for the job is one that can help facilitate and communicate effectively throughout the refinancing process. TitlePlus in Baton Rouge stays on top of their game during their thorough search. We provide quick title searches that look for any possible problems with your client’s home’s property. Talk to the experts at TitlePlus for a quality title company to work with during a refinancing.