A Step-By-Step Walkthrough
1. Loan Search – Put yourself in the hands of an experienced mortgage professional, someone who will help you to determine which financing options best suit your needs today and in the future.
2. The Hunt – Begin shopping for a loan. Once you find the right loan officer and/or company, the terms of the loan will be discussed, including the price and the terms of the loan being sought.
3. Loan Application – Supply your mortgage professional with all required information, and try to be as accurate as possible. It's essential to include all outstanding debts as well as assets and income.
4. Documentation – Submit the proper paperwork supporting your application to your loan professional. Commonly requested items include pay stubs, two years' tax returns, and account statements verifying the source of the down payment, funds to close, and reserves.
5. Appraisal – Lenders most likely will require an appraisal on your home. This will let you know the true value of the home in todays market.
6. Title Search – This is the time when any liens against the property are discovered. A lien may have been placed on a property to ensure payment of outstanding debts by the owner. All liens must be cleared before a transaction can be completed.
7. Processor's Review – All pertinent information will be packaged by your mortgage professional and sent to the lending underwriter, including any explanations that may be needed, such as reasons for derogatory credit.
8. Underwriter's Review – Based on the information put together by the loan professional, the underwriter makes the final decision regarding whether a loan is approved.
9. Approval, Denial or Counter Offer – In order to approve a loan, the lender may ask the borrowers to pay off more debt in the refinance to improve the debt-to-income ratio.
10. Insurance – Lenders require up to date fire and hazard insurance on the replacement value of the structure. Flood insurance will also be required if the property is located in a flood zone. In California, some lenders require earthquake insurance on condominiums.
11. Signing – During this step, final loan and escrow documents are signed.
12. Funding – At this point, the lender will send a wire or check for the amount of the loan to the title company.
13. Closing – Documents transferring title will now be officially recorded by the County Recorder.
14. Confirmation of Funding – The lender authorizes the disbursement of loan proceeds.
15. Congratulations, you have refinanced your home!
If you'd like to learn more, please give us a call. We would be happy to speak with you!
http://thehomemortgageguide.com/refinance.php
