My loan payoff appears higher than my principal balance.
Yes, that would be accurate. The principal balance is the figure valid to pay off your loan on the first of the month…. every day after the first has a daily cost. (See more below)
Will I get a refund of the payment I made on the first of the month for the month I am settling in?
No, that payment was applied to the accrued interest from the prior month. For example, February’s payment actually pays January’s interest. Mortgage interest is paid in arrears. Therefore you will actually pay interest from the first of the month to your settlement date…. plus approximately 7 additional days to allow for funding, disbursement, and transportation. Once the check is received by your bank the interest will stop and any additional sent will be refunded. (see more below)
How will I get my escrow funds back?
Lenders will make an accounting of any additional interest owed to you PLUS the balance of your escrow account in approximately 60 days following closing. Settlement Pros will provide your old lender with your new address. Your refund check will come directly from your paid-off lender based on our request.
What do I need to bring to closing?
A valid, government-issued photo identification card. Everyone that is on the title must attend closing or have made arrangements to be represented by an attorney-in-fact by a written power of attorney.
Why does a Home Equity Line that I never used need a fee to release it from my title?
Every time you borrow where your house is used as collateral creates a lien on title regardless of whether it is called a First Mortgage, Second Mortgage, Home Equity Line, or Indemnity Deed of Trust. They all create a security interest for the face amount of the Note, either the original amount borrowed or in the case of a Home Equity Line the ultimate amount that could have been borrowed. As such, this will show up as a lien on the title, the release of which will need to be obtained and/or prepared by Settlement Pros and filed in the land records of the property’s jurisdiction to clear title to the new owner.
Do I need to bring the original Deed to closing?
No, a new deed will be prepared for you to sign to convey title to the new owner. A search of the Land Records will confirm that you are the record owner of the property.