Knowing when, why, and how to refinance your home is key to making a good decision to improve your financial situation.
Reasons refinancing may be right for you:
People always wonder if refinancing is right for them, be assured we want to make sure refinancing will benefit you. We will do the math and help determine if it’s in your best interest to refinance.
These are just some of the reasons refinancing may be right for you:
• Lower your monthly mortgage payment
• Eliminate PMI (private mortgage insurance)
• Get out of an adjustable rate to a fixed rate mortgage
• Shorten the term of your mortgage
• Consolidate your debt (Pay off those debts faster, as a result. In reducing the total interest paid, you could pay off those debts faster)
• Use your equity to remodel, add a pool, add value to your home, college tuition, medical needs or for a future investment.
**Remember, mortgage interest unlike credit card interest is often tax deductible. See your tax advisor.
Refinancing a home? You will need to have these documents ready:
• Two consecutive paystubs ( a month’s worth) that show year to date income
• W-2 statements for past two years
• If retired, most recent social security award letter and proof of pension
• Most recent 2 months bank statements on all accounts (ALL PAGES, even if blank)
• Most recent monthly or quarterly statement for any retirement/ investment accounts, ALL PAGES (such as 401K, IRA, etc)
• Declaration page of your current homeowners insurance policy
• Recent Mortgage statement or coupon
• Owners title policy
• Warranty deed
• Copy of complete personal tax returns for past two years ( in some cases, ie: you own other properties, have commissioned or bonus income or self- employed)
• If you or any co borrower is self- employed, a complete copy of your business tax returns for past two years
• Copy of the divorce decree and property settlement agreement if applicable
• Clear copy of borrower(s) driver license
Lenders or underwriters might require additional documentation specific to the type of loan you desire but these basic ones should get you started. For purchase mortgages, be sure to have your purchase agreement and real estate contract on hand. For refinance applications, bring along your home insurance policy and most recent mortgage statement.
1. Gather the items on the document checklist. If you don't have a document checklist, click here.
2. Scan and send your documents to us via secure e-mail link or fax. You can also bring your documents to us in person. Then, we will fill out the application and paperwork using the paperwork you have provided and your credit report. Once we have filled out the necessary paperwork, you can e-sign the documents or stop by to sign them in person.
3. As soon as the intent to proceed and all disclosures have been received and electronically signed we will order your appraisal.
5. Adhere to any requests in a timely manner if additional documents are requested from your mortgage specialist. The faster you will be able to refinance.
6. Don’t move monies between accounts, don’t make any deposits other that paychecks, don’t apply for or open new credit (don’t make big purchase, the furniture will have to wait).If you aren’t sure ask your mortgage specialist first.
7. Communication is the key! Before you do anything ask us first! Remember once pre-approved we must know of any changes as it may change your ability to qualify for a home loan. We would prefer you contact us anytime if you have any questions. Text, email, or phone we are here for you!
8. Count on us to smoothly guide you right to the closing table.
Step 1: Contact Us
Our highly skilled mortgage loan originators will be happy to answer your questions and assist you in finding the program that suits your borrowing needs. Simply contact us at any time. We are looking forward to discussing all the options with you so you can make an educated decision
Step 2: Call to determine if refinancing is right for you
It takes about 8 minutes over the phone to determine if you can benefit from refinancing your home.
Step 3: Complete and Sign Application (24 hours)
One of the greatest benefits to working with us is that you may choose not to leave home. Nor do you have to spend hours filling out mountains of paperwork. With your documents (see “Refinancing Document Checklist“) we will fill out your application for you. We do all the work! Within 24 hours of receiving your documentation and preparing your application, we will email you via a secured link your completed a loan application along the loan estimate and all other required disclosures you need to sign, you can even sign right online from the comfort of your home or office. Of course we love visitors so you can always come to the office and meet with us, it’s totally up to you
Step 4: Processing the Application and Initial Underwrite (7-10 business)
Once we receive your signed application and have all supporting documents we will order the property appraisal. Then an appraiser local to your area will be assigned to review the property. We will submit your application and all documents you provided to the underwriter who will review this information. In the meantime, we are doing the behind the scenes work, ordering title work, contacting the insurance agent you have chosen and collecting any other documents. At any time, we encourage you to contact your mortgage loan specialist regarding questions you may have or just for an update on the progress. You can text email or call your personal loan originator anytime.
Step 5: Underwriting the Loan for Final Approval (48hours)
Once we have your conditional approval we can send out your Closing Disclosure (CD) for your review. This must be done 3 days or more prior to closing. After the initial underwrite and appraisal review we collect any other items requested by the underwriter and submit for final approval. This is usually reviewed and cleared for closing within 48 hours. The underwriter will notify the closing department to
Step 6: Closing
Closing documents will be prepared by the lender and provided to the closing agent (Title Company or lawyer). You attend your scheduled closing and sign all the documents and DONE!
What NOT to do during the refinance process
Here are 8 things you should absolutely not do between your date of application and your date of closing. Doing even ONE of these could jeopardize your ability to refinance your home.
1. Don’t buy a new car or trade-up to a bigger lease
2. Don’t quit your job to change industries or start a new company
3. Don’t switch from a salaried job to a heavily-commissioned or bonus structured job
4. Don’t transfer large sums of money between bank accounts or withdraw any either
5. Don’t forget to pay your bills ON TIME– don’t place any disputes on your debts
6. Don’t open new credit cards — even if you’re getting 20% off “just to open a card”
7. Don’t accept a cash gift without filing the proper “gift” paperwork from your mortgage specialist
8. Don’t make random, undocumented deposits into your bank account, almost every deposit (other than payroll) has to be paper trailed