Steps in the Home Mortgage Refinance Process

If you are thinking about refinancing your mortgage, or you are already in the process of refinancing, it’s a good idea for you to understand the mortgage refinancing process. Knowing what to expect ahead of time is always beneficial and promotes a smooth, easy and successful transaction.

 

Following are some of the basic elements of the mortgage refinance process. For more detailed information, it’s important to work with an experienced mortgage broker who can explain each step to you in full detail as it occurs.

 

Step 1 – Determining if a mortgage refinance is a good decision. If you are able to qualify for a mortgage with a lower interest rate than your current loan offers, a refinance might be an excellent decision. However, a refinance is not necessarily a good choice for every homeowner. Before committing to a mortgage refinance, make sure to run the numbers. In many cases, refinancing to a mortgage with a lower interest rate can save you a significant amount of money every month.

 

Step 2 – Deciding on the type of mortgage for your refinance. When it comes to home mortgages, there are several options. Your existing mortgage might be a 30-year loan with an adjustable rate mortgage, but you might want to refinance into a mortgage with a fixed interest rate and a shorter term. Your mortgage broker should be able to provide you with information on the various available options, and the pros and cons of each. Make sure your decision is made only after you are educated on all of your choices.

 

Step 3 – Completing your mortgage application. After you decide which mortgage option best suits your needs, you will be required to apply for the mortgage. Your mortgage broker will provide you with a list of information and paperwork that you will have to submit along with your application.

 

Step 4 – Waiting for mortgage approval. Once your mortgage application is complete – along with the submission of all required documents – your prospective mortgage lender will take time to review your application. This is called the underwriting phase. After the review is complete, the lender will either approve or deny your loan.

 

Step 5 – Signing closing documents. After you are approved for your new mortgage, a closing date and time will be assigned. During the closing, you will be required to sign several documents.

 

Step 6 – Enjoying your new mortgage. The closing is the last official step in the mortgage refinancing process. Once the loan is closed, you can sit back, relax and enjoy your new loan! Hopefully, your new loan has a lower interest rate which will lower your monthly payment obligation – allowing you to save money each month.

 

For more information about the home mortgage refinance process, call The Home Loan Arranger today at 1-877-938-7501. Free consultations are available to homeowners interested in learning more about low interest rates.

 

About Jason

Jason M Ruedy is The Home Loan Arranger - Denver mortgage broker and Colorado's top producing loan officer of residential loans, refinance, purchasing, conventional loans, FHA, and VA loans. For home loan information, visit The Home Loan Arranger or connect with Jason Ruedy on LinkedIn .

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