Refinance Process

Reasons to refinance

Are you paying too much on your loan? Feeling locked in? Refinancing can help you change your payment structure and give you more flexibility.

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Are the rapidly declining markets with fluctuating interest rates bringing you down? Refinancing can help you safely convert your ARM mortgage to a fixed-rate mortgage so that your rate never changes. Are you finding yourself staying in your house longer than you expected? Refinancing can extend your expiring ARM payment or convert it to a fixed-rate mortgage so that you can enjoy your lower payments longer.

These are just some of the ways refinancing can alter your payments:

  • You can lengthen or shorten your loan from 15 to 30 year mortgage or 30 years to 20 years. This will change your payment amount according to the length of the loan, but may help you pay off your mortgage loan faster**
  • You can also refinance to an interest only loan. An interest only loan requires you to pay only the interest on your loan, giving you the option of paying against the principle if you need to. This gives you the flexibility of managing your monthly payments.
  • Refinancing allows you to access your home equity quickly and safely
  • The equity on your home can help you consolidate debt and pay off credit cards
  • You can use the equity to remodel and update your home
  • The equity from your home can help with your child’s education
  • Switch from an Adjustable Rate Mortgage (ARM) to a Fixed-Rate Mortgage
  • Pay off an expiring balloon* loan

*Balloon payments are just like Adjustable-Rate mortgages because they are offer lower rates and lower payments in the beginning; however, if you still have the property at the end of the balloon payment term (usually 5-7 years), the entire balance becomes due to the lender. Refinancing can help you avoid putting your house on the market before you are ready by paying off your Balloon and giving you a longer-term mortgage loan.
**By refinancing the consumer's existing loan, the consumer's total finance charges may be higher over the life of the loan

Refinance Process

What to expect:

  1. You will need to complete a full loan application either online, in person, over the phone or through mail. It is very important that you complete ALL sections of the application.
  2. Once you have completed the application, signed all initial disclosures and returned to your Loan Officer along with the list of required supporting documentation, your loan will be submitted to “File Set Up”
  3. During the file set up process, a Loan Processor will be assigned to work with your Loan Officer and guide you through the process to closing. **Keep their contact information handy**
  4. Expect that the total process will take approximately 30-45 days once the complete application package has been assigned to a Loan Processor.


Prepare for Your Home Loan

Use this checklist to make sure that you have everything you need before you begin your loan application. Having all necessary documentation up front saves time so your loan can close smoothly and quickly.

1. 2 Years of Tax Returns (All Pages, All Schedules, All Borrowers)

2. 2 years of W2’s (All Borrowers)

3. If Self-Employed:

  • a. 1099’s and copy of your business license
  • b. 6 Months Profit and Loss Statement
  • c. 2 years Business Tax Returns (All Pages, Schedules, K-1, etc.)

4. Most recent banks statements cover the last 2 months (all accounts, all pages)

5. Explanation (signed and dated) of any deposits over $1,000 other than normal pay into accounts.

  • a. May require a Gift Letter and Copy of Cancelled Check

6. Most recent pay stubs (minimum of 30 days and must reflect YTD earnings)(All Borrowers)

7. Copy of Identification:

  • a. Driver’s License
  • b. State ID
  • c. Proof of Residency (if applicable)
  • d. Social Security Card(s)

8. Explanation (signed and dated) of any inquiries on credit report

9. Mortgage Statement, Insurance Declaration Page, and most recent tax statement for all other properties owned

10. Divorce Decree, Separation Agreement and/or Court Ordered Child Support (if applicable)

11. Copy of Earnest Money Check along with month of bank statement showing check has cleared (if purchase)

12. Copy of fully executed Purchase Agreement (all pages) , if applicable.