Is Refinancing Suitable for You?

Are You Qualified for a Refinance?

A one-on-one personalized review with a professional mortgage broker will assist you in deciding if a mortgage refinance is right for you. It’s important to understand the objectives in order to assess the value of a possible refinance.

  • Help in lowering rate and monthly payment.
  • Take money out to pay off debts or make improvements to your house.
  • Convert your 30-year loan to a 15-year loan.
  • Convert a variable cost to a set rate.

The amount of money you will save will decide if refinancing is the best option for you. By getting pre-approved ahead of time, you’ll know not only how much money you’ll save each month, but also how much money you’ll save in overall interest over the life of the loan. This calculation of your “net tangible benefit” is based on a number of factors, including your credit score, equity or lack thereof, current loan type, time left on existing loan, and current rate. While there will undoubtedly be some costs associated with refinancing, by taking these measures, you will be able to determine the estimated break-even point for the expense vs. overall gain of refinancing. If you have this detail, you will pick a loan platform that is right for you that can help you meet your objectives in a confidential setting.

Decide on the best loan program for you.

With so many choices available today, you’ll need expert guidance to help you choose the best software for your specific needs. Based on your expectations, what you qualify for, and a mortgage package you feel comfortable with, your trusted mortgage counselor will be able to come up with multiple loan options. Here are a few common services that can assist you with refinancing.

FHA, VA, and USDA Streamline Conventional and Jumbo Loans with HARP 2.0
Some of these services don’t need an assessment or mortgage insurance, and many of them don’t even require any equity.

It’s Lock-In Time

Your trusted mortgage advisor will confirm your loan package, rate, and cost, as well as answer any questions you might have, once you pick a program and decide to move forward. This is when your interest rate will be locked in to shield you from market volatility and to guarantee your bid. Your rate will usually be locked for 30 days or less to give you enough time to complete your refinance.

Note: In some cases, an FHA, VA, or HARP 2.0 refinance may be completed in as little as (15) days.

Document Submission

Once you’ve been locked in, you’ll be issued a comprehensive list of documents that must be faxed, scanned, or emailed in order for your records to be checked and your loan accepted quickly. This document request is time sensitive, so please respond as soon as possible to ensure a timely and error-free closing. At this stage, you will be asked to sign your initial disclosures, which will outline the terms of your loan. If your assessment is needed, it will be scheduled, and you will be notified to arrange an inspection date and time. Having the assessment scheduled as soon as possible is important to prevent any delays in the closing process.

Processing, Underwriting, and Paperwork

The processing, underwriting, and paperwork cycle starts after all of the requested products have been received. The processor, underwriter, investor, title company, insurance agent, and so on are all involved. Your profits, properties, and all third-party products will be checked at this stage. The processor will then compile all of this information and send your entire loan file for approval to the underwriter. After that, your refinance will be accepted with conditions. You will be asked for additional details to fulfill any underwriter requests. To meet your closing deadlines, make sure to include anything requested in a timely manner. You will obtain final approval after all requirements have been met. Your loan papers are drawn up at this point and forwarded to your real estate attorney in order to prepare for closing.

Closing

The final step in the refinance process is closing. The closing can take place at the attorney’s office, your house, or some other convenient venue. Your trusted mortgage advisor will go over the HUD settlement document with you before closing to go over the funds required at closing (if any) and other final information. Several loan documents will be reviewed and signed during the closing. Each document will be thoroughly explained by the closing agent, who will also be available to answer any questions you may have. After you’ve completed the signing process, the lender will review all of the closing documents and, three business days later, wire the funds needed to complete your refinance.

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