Refinancing, what does this mean? Am I even qualified to refinance? Is that like taking out another mortgage, even though I just purchased my home? These are all very valid questions and even though you might have just purchased your first home, or your looking at 22 years of owning, refinancing could be a great option for you.
What you really need to understand when it comes to refinancing is that no matter how long you’ve owned a home, you can do it. A refi on your home is really just a helpful way to save you money for other bills or expenses, lower your interest rate, change the terms of a loan from adjustable rate to a fixed rate or any combo of these.
We will meet with you and discuss what goes into it, but for now here’s a top level checklist of items you can expect:
1) Meet With Your Mortgage Banker To Discuss Your Goals – If you’re ready to refi, it’s best to meet with one of our mortgage bankers to understand what goes into a refinance. If you’re thinking of striking while the interest rates are hot, then let’s get your application in!
2) Conditional Approval – We can discuss what kind of refi best suits you and lock you into a great rate after receiving all of your documentation; paystubs, tax returns, W-2s and/or 1099s, credit report, statement of debts and assets. Yes, it sounds like a lot, but keep in mind we need this information just like we did in the initial step of homeownership.
3) Processing Your Loan – Our Operations departments leap into action by verifying your information and performing a check of all your documents to make sure they are completed properly. Then our team orders an appraisal and performs a title search for you.
4) Your Loan Is “Clear To Close” – Woohoo, you’re almost there! Your file is marked “Clear to Close” internally and one last check is done to make sure documents are still current and that your rate is locked in.
5) Receive Closing Instructions – Our Closer will provide instructions to your closing agent and a preliminary closing/settlement statement is received and reviewed. Once approved, closing is scheduled. Your closing agent prepares a closing package with a bunch of paperwork you’ll need to sign/or e-sign to make the refinance official!
6) Close On Your Refi – That’s it, you’re all set with your refi – now you can enjoy the perks of saving a little extra money!
Now that you’ve decided you’re ready to refinance you can prepare yourself by gathering documentation necessary and contacting one of our mortgage bankers. We’re ready to help you and we can hone in on the specifics of a refi, plus give you more insight on the current interest rates!