Title Company’s Role in Refinancing

What Does a Title Company Do During a Refinance? 

Homeowners across Florida are refinancing more than ever. Whether they are looking to lower their interest rate, change loan terms, or tap into their equity, the refinance process offers real financial benefits. But there is one critical step that often gets overlooked: the role of the title company. 

Most people associate title work with home purchases, not refinancing. However, lenders still require a thorough title review and updated insurance policy before approving a new mortgage. That is where AZ Team Title steps in. As your title partner, we make sure the refinance goes smoothly from contract to close. 

Why Title Companies Are Involved in Refinancing 

Refinancing creates a new loan agreement with your lender. Even if you already own the home and have title insurance from your original purchase, the lender still needs updated confirmation that the property is free of new liens or claims. 

Title companies perform a new title search to verify ownership, check for encumbrances, and confirm that everything is clear before closing. Then, a new lender’s title insurance policy is issued to protect the lender from losses due to unforeseen title issues. 

Although most refinances do not require a new owner’s policy, many borrowers choose to update their coverage, especially if their financial or ownership situation has changed. 

What Happens During a Refinance Title Search 

A refinance title search is similar to the one done when buying a home, but it is usually faster and more focused. The goal is to confirm that no new issues have appeared since the original purchase. 

Common problems that can show up include: 

– Unpaid taxes or municipal liens 

– Contractor liens for work done on the property 

– Errors in public records 

– Divorce-related ownership disputes 

– Inherited ownership conflicts 

Even something as simple as a typo in a legal description can delay your refinance. That is why it is so important to have a local, experienced title team managing the search. AZ Team Title is deeply familiar with Central Florida property records and works proactively to spot and resolve problems early. 

Coordinating the Refinance Closing 

Once the title is cleared, the next step is coordinating the actual closing. This is where the title company handles many of the behind-the-scenes details that keep the process running smoothly. 

We prepare the closing disclosure and settlement statement, gather signatures, and make sure all required documents are properly executed. We also manage the disbursement of funds, ensuring that old loans are paid off, any closing costs are settled, and the new mortgage is recorded correctly with the county. 

Working with a local title partner like AZ Team Title can speed this up significantly. We are hands-on, responsive, and experienced with Florida-specific requirements. 

Do You Need New Title Insurance When Refinancing? 

The short answer is yes. Lenders require a new lender’s title insurance policy every time you refinance. This policy protects the lender against potential losses if a title defect is discovered later. 

Homeowners are not required to purchase a new owner’s policy, but it is often a smart choice. If you have recently taken on new debt, changed ownership structures, or are refinancing after a divorce or inheritance, your original owner’s policy may no longer cover the current risks. 

A title insurance policy is a one-time fee that offers protection for as long as you own the home. Claims are rare, but the cost of an issue can be severe. According to the American Land Title Association, the average title insurance claim involving fraud or forgery results in over $143,000 in losses.

Why Refinance Activity Is on the Rise 

Even with higher rates than the lows of 2021, refinancing has remained strong in 2025. Many homeowners are switching from adjustable to fixed-rate mortgages, shortening their terms, or pulling out equity to fund renovations or pay down debt. 

In fact, refinance application volume jumped 42.6% year-over-year as of late June. With that kind of movement in the market, lenders are tightening standards and relying even more on accurate, efficient title work. 

Benefits of Working with a Local Title Company 

There are plenty of national providers out there, but when it comes to your home and your money, local knowledge matters. AZ Team Title brings years of experience closing transactions throughout Osceola County and the greater Central Florida area. 

Here is what you can expect from working with us: 

– Fast turnaround times with a direct local contact 

– Familiarity with Florida-specific recording requirements 

– Hands-on support for questions or unexpected issues 

– Transparent pricing with no surprise fees 

We work closely with your lender, coordinate efficiently with your closing agent, and keep you informed every step of the way. 

Common Questions About Refinancing and Title Work 

Do I get to choose my title company when refinancing? 

Yes. RESPA (the Real Estate Settlement Procedures Act) gives you the right to select your own title provider, even if your lender suggests someone else. 

Will title insurance cost as much the second time? 

Typically, lender’s title insurance premiums are lower for a refinance than a purchase, and discounts may be available if the existing policy is still recent. Ask us about reissue credits. 

How long does a refinance title process take? 

In most cases, just a few days. AZ Team Title prioritizes refinance files to keep your timeline on track. 

What if the title search finds a lien or issue? 

We will work with you to clear any problems before closing. This may involve contacting contractors, resolving old balances, or filing corrective documents. Our job is to protect your interest and keep the process moving. 

Final Thoughts: Keep Your Refinance on Track 

Refinancing can be a smart financial move, but only if the closing process goes smoothly. A reliable title company ensures that your property is clear, your documents are accurate, and your lender gets exactly what they need. 

At AZ Team Title, we understand that refinancing is about more than paperwork. It is about trust, timing, and making sure nothing gets in the way of your financial goals. 

Have questions about your upcoming refinance? 

Contact AZ Team Title today to schedule your title review, request a quote, or get started with your refinance closing. We are ready to help you move forward with confidence. 

What are Title Services?

Buying a home doesn’t work without title services. That’s not a tagline. It’s the legal and operational truth. You can make offers, get financing, and schedule inspections, but until the title is cleared and transferred, none of it sticks.

Title services are how ownership becomes real. If they’re done right, the deal closes. If they’re not, the problems show up later—and they show up in your name.

This guide breaks down what title services are, what a title company actually does, how title insurance works, and how to avoid getting stuck with the wrong one.

What Are Title Services?

Title services are the legal and administrative steps that protect your right to own property. They confirm that the seller owns what they’re selling, that no one else has a legal claim to it, and that the transfer can happen cleanly.

The work includes researching public records, identifying liens, resolving disputes, coordinating closing documents, issuing title insurance, and recording the sale.

If a past contractor filed a lien, if a previous mortgage wasn’t released properly, or if there’s a missing heir with a valid claim, that’s the kind of problem title services are meant to prevent. You don’t want to discover those things after you’ve moved in.

What a Title Company Does

A title company is the engine room of the closing. It doesn’t just review paperwork. It clears obstacles, coordinates parties, and makes sure the deal complies with local law.

Here’s what they actually do:

Everything has to be accurate. A mistake at this level can delay closing, trigger a legal issue, or invalidate your ownership.

For more detail, read What Does a Title Company Actually Do?.

What Is Title Insurance?

Even with a clean title search, things can still go wrong. Title insurance protects against the problems no one saw coming. That includes forged documents, misfiled records, unknown heirs, or recording errors.

There are two types of title insurance:

If a valid claim is made against the title, the policy covers legal defense and financial losses. Without it, you’re exposed to the full risk whether or not you caused the issue.

For a deeper breakdown, see Understanding Title Insurance.

What Happens on Closing Day

Closing day is when documents are signed, funds are transferred, and the county records the deed. But that only happens if the title company has cleared the file and coordinated the entire process.

They manage identity verification, review every number, confirm final loan terms, and submit documents for recording. If anything is missing, the deal doesn’t close.

For the full breakdown, read What Happens on Closing Day.

How to Choose a Title Company

You don’t have to use the one your agent suggests. You can choose your title company. And you should.

A good title company knows how to prevent delays, communicate clearly, resolve issues early, and explain what’s happening. A bad one lets deadlines slip, avoids accountability, and holds the deal hostage to paperwork.

If you want help choosing the right one, start with How to Choose a Title Company.

Why It Matters in Florida

Florida closings involve local rules that out-of-state providers often miss. Municipal lien searches, homestead exemptions, and formatting requirements vary by county. If the title company doesn’t know the state, files get rejected.

Low-cost title companies advertise nationwide. They often don’t know how to get a file recorded in Broward, Orange, or Duval. That slows down funding, frustrates lenders, and can lose you your rate lock.

Final Thoughts

Title services are the backbone of every real estate transaction. If they’re handled with care, everything else moves smoothly. If they’re rushed, under-resourced, or handed off to someone who doesn’t understand Florida law, the deal falls apart.

Want a closing that’s built to finish clean? Talk to us.

Want to check your numbers before reaching out? Use the rate calculator.