Refinance before first payment?

[gorgon]

Has anyone else done it?

I (stupidly) let the out-of-state dealer I went to talk me into using their "preferred lender" and got a higher rate than I felt I deserved. I called the credit union I bank with to refinance a few days later and was able to cut 6 months off the term, got a lower rate, a lower payment, and got GAP insurance just by doing so.

The only thing that worries me is the title paperwork. Since the first lender is now paid off before I even made my first payment, and the vehicle now "belongs" to the CU, how does that work? I'm sure both lenders have requested title work on the same VIN.

Also, the original loan has not showed up on my report yet. Will it eventually just show up as a closed loan with only one payment (the payoff?)

[sccredit]

Yes, it will show up as closed with one payment. The CU will handle the title paperwork, don't stress about it. They are the pros at this and have more experience than most of us combined. 

[Anonymous]

Congrats, you saved money!.....nothing else matters.  +1 dont worry.

Just make your new payment when due.

SWEEET deal!

[Appleman]

The first lender can give you a notarized lien release. You can take this into the DMV and list refinanced lender.

Yes, the credit unions are use to taking care of helping with the Title work.

[Loquat]

Your first lender won't care about the title work anymore because they've got their money.  They no longer hold an interest in that vehicle at all.  What you'll need from them is a lien release and that'll be all your need and your last communucation with them.