Home Mortgage Refinancing Procedure: Refinancing Process—A General Overview

A General Overview of Home Mortgage Refinancing

Regardless of your reason for refinancing, the process is going to be about the same. After you have done your research on the different kinds of loans and are armed with latest data on interest rates and costs, it’s time to call around.

Contact Your Current Lender When Seeking Home Mortgage Refinancing

The first thing you should do is call your current lender. As long as all your paperwork is current, they should not have to charge you the fees you would pay to a new lender to collect information. If they are willing to drop and reduce fees, give them a competitive chance, although you should also talk to other lenders.

Consider All Costs and Fees Associated with Home Mortgage Refinancing

Next, get a list of costs and fees up front from all lenders you’re considering. If they won’t give it to you, look elsewhere—they may use your lack of knowledge of their fees against you in the closing, and slip in things they conveniently “forgot” earlier. Get a commitment in writing of all points and fees.

The Paperwork Associated with Home Mortgage Refinancing

When you have chosen your lender, you will have some paperwork to fill out. Although this varies by state, generally you will have an application, and your loan representative will assemble offers for you of various loan packages.

Double Check Home Mortgage Refinancing Application and Related Materials

At this point, you may want to present these packages to some trusted professionals, like your tax specialist or a lawyer. Have them look for errors or future problem areas, and know how the refinancing will affect your tax deductions.

Processing the Home Mortgage Refinancing Loan

After you choose the loan that is best for your situation, it’s time to process the loan. You must get all paperwork the lender needs, and pay fees associated with those documents. You will receive a disclosure within three days. You must sign and return to you’re the representative handing your new loan.

Getting a Home Appraisal

If you don’t have a current appraisal, this will need to be done next. Often if it’s current and you are using your old lender, this may not be a necessary expense. The new loan company, if you are going elsewhere, will have to have the payoff letter from your old mortgage, and will also get a title search on your house.

Home Mortgage Refinancing Underwriting

Soon your loan will go to underwriters, who will either approve the loan or ask for further paperwork if necessary. After this, the loan company schedules a closing date with you, draws up the final documents, and sends them to whomever is closing the loan.

Home Mortgage Refinancing Loan Closing

At the closing, your lender will provide you with copies of all documents, and there will be plenty for you to sign. After this, you have three days to cancel this loan. After this time, the old loan is paid off and the new mortgage goes into effect. If you are getting any money back, that’s when you will get it.