If you have decided to refinance your commercial property, you are not alone. Arefinance provides a property owner with the ability to take advantage of a number of exceptional benefits, and this includes lowering the interest rate and interest charges, adjusting the loan term and even taking equity out of the property for other investments or other plans. The refinance process is similar to the buying process in many ways, and this includes the need to purchase a new title commitment and to review the title policy before closing.
Your new lender will require the title commitment as one of the conditions of closing, and they will also require that the title policy be free of encumbrances. The previous lender may have required all issues and disputes to be cleared up before closing on the purchase loan, but new issues may have cropped up between the purchase date and the present time. The new lender will review the policy and will require all new issues to be dealt with before closing. This may include liens on the property to be paid off and other related issues to be dealt with. Some may be required to be satisfied before closing, and others may be a condition of closing. Your escrow agent will notify you of any issues on the title commitment that are a concern, and you will be informed of issues that must be dealt with before or during closing.
At closing, a new title insurance policy will be issued. Just as your previous commercial title insurance policy remained in effect after closing on the purchase, the new title insurance policy will remain in effect until you sell the property or until you refinance it again. Any time you get a new loan on the property, the lender will require you to purchase a new policy. Keep in mind that you may update an existing policy rather than purchase a brand new policy in some cases. Your escrow agent can inform you about the options available. As soon as you make the decision to refinance your property, you can get in touch with your agent to learn more about the process and requirements.
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