What does a real estate lawyer do for a refinancer?

When you’re refinancing your mortgage, you should consult with a real estate lawyer. To ensure your rights are being protected, a real estate lawyer reviews loan documents, registers the new mortgage, and facilitates the transaction with the lender. They will also conduct another title search, to ensure the title is still clear and no leans have been made against it; this protects both you and the lender.

Some lenders give refinancers the option to have legal fees covered by the lending institution. While this might seem like a convenient option, working with a real estate lawyer of your own choosing gives you the opportunity to build a relationship with your lawyer, ensuring you are working with someone you trust. You can expect to pay $700-1,000 in legal fees, when you refinance your mortgage.

What is a trust ledger statement?

On the day you close your refinance transaction, your real estate lawyer will prepare a trust ledger statement. Much like the buyer’s and seller’s statement of adjustments, the statement outlines how much equity you are pulling from your home, deducts any debts you are consolidating as well as how much you are paying for title insurance and legal fees, then shows how much cash you will have leftover.

If you want to see an example of a trust ledger statement prepared for a refinancer, click here.