Homeowners choose to refinance for two main reasons: for a lower rate, or for a monthly payment adjustment. The refinancing process is similar to the mortgage process concerning the steps, the documentation and the overall progression of the loan. So, when you’re looking into refinancing your home, you will already have a good idea of what to expect based on your original home loan origination. However, while the process is very similar, there are three key things that you can do to ensure that your refinance stays on track and closes as soon as possible.
- Documentation – Consider having your necessary documentation together before you apply for your refinance. The documents that you will need for your refinance are often the same ones you used for your original mortgage. To find out what documents you will need, check out our documents checklist.
- Transparency – Be transparent about your current financial situation and make sure your mortgage banker is aware of any potential obstacles. Chances are, if your mortgage banker is aware of issues before beginning your refinance, they can better direct you on how to fix any problems.
- Consistency – Just like with during your original mortgage process, make sure that nothing significant changes in your financial situation during the time you are trying to refinance. Make sure you remain up to date on all of your current debts and don’t apply for any new credit until your refinance is completed.