Applying for your loan

Applying for a refinance loan is similar to applying for a first mortgage loan. Once you have filled out and submitted a loan application, a mortgage representative will review your application. Your mortgage representative will make sure you have considered all your borrowing choices and that refinancing is right for you. Prequalifying will help make the refinancing process go faster.

Your interest rates are locked-in on the day the loan representative accepts your mortgage loan application. You may be asked to provide some financial documentation such as W2 forms, pay stubs, or bank statements.

Appraisal

A professional appraiser will need to complete an extensive appraisal or evaluation of your home and property. The appraiser will give an estimate of the market value of your home. Appraisal fees are a part of your closing costs, and depending on how recently you bought your home, you may not need an appraisal.

Closing

The final step in the refinancing process is to sign the final paperwork. Closing costs are to be paid when the loan papers are signed. Make sure you ask to review all of your settlement documents at least three days before you sign them. Consider asking your attorney to review them, as well

A refinanced mortgage takes just as much effort to upkeep and maintain as a first mortgage. You will want to watch your loan very carefully.

Read About Taking Charge of Your Loan