When you purchased a house with a home loan, you went through the mortgage loan process to get the money you needed for the house purchase. Can you remember this process? If so, it might help you learn what to expect when refinancing your home. The refinancing process is similar to the process of buying a house with a mortgage. If you want to refinance your home loan, here are the steps you should expect.
1. Contact a Lender
To refinance, you will need a lender. Most mortgage lenders offer refinance loans, and you can contact one or more lenders to ask questions. When you call, you might want to ask about the interest rates they offer. You might also want to ask any other questions you might have. If you find a lender you want to work with, move on to the next step.
2. Fill Out the Necessary Paperwork
Lenders require applications when processing refinance loans. Therefore, you must fill out the application and submit it to the lender to initiate the process. You might also have to provide the lender with tax returns, pay stubs, and other types of documents. From there, the lender will take over the case. They will verify your information and evaluate your finances and credit. They will decide if they want to offer you a loan or not. If they agree to, they will need a house appraisal.
3. Get the House Appraisal
You must get a house appraised when buying it or refinancing the loan. Lenders always require this step because they need to know the home's value before providing a loan. The lender might also base the loan amount on the appraisal. Generally, this only happens when a homeowner wants to take cash out when refinancing.
4. Wait for Underwriting to Approve the Loan
Once the lender completes all the necessary steps, they will send the loan information to the underwriting department. You cannot close on the loan until this department approves it. It might take a few days for the underwriters to verify everything. If everything looks good, they will tell the lender to continue to closing.
5. Sign the Closing Documents
Your new loan will not begin until you sign all the closing documents. These documents create a contract between you and the lender, and you might have to sign dozens of papers during this appointment.
Refinancing a home loan is beneficial for many people. If you are interested in doing this, contact a home refinancing lender today to get started.Share