- Finding the right mortgage broker can be a time-consuming task. You'll want to choose a licensed broker who has your best interests in mind. A good mortgage broker will always be upfront about all fees.
Request a good faith estimate from each mortgage broker. This puts the cost of your refinance in writing. Compare the closing costs involved.
Furthermore, make sure that the loan your broker is proposing matches your financial objectives. For example, if you want to get a low, dependable 30-year fixed rate loan, you might want to avoid adjustable rate or balloon mortgages that could bring higher interest rates in the future. - Completing your refinance documents in a timely fashion should help speed up the process. You'll be required to submit a loan application, a W-2, bank statements and tax returns.
Your credit score will be verified as well. If your credit score is below 600, you may have a harder time qualifying for a loan. The lower your credit score, the more you'll have to pay to refinance your mortgage. - An appraisal is a must if you want to refinance your mortgage. .
An appraiser uses comparable properties in your area to evaluate the worth of your home. In some instances, your appraiser may do an in-home inspection to assess the value of your home. Getting an appraisal scheduled and completed in a timely fashion will expedite the refinancing process. - When your loan is in underwriting, your financial information will be evaluated. Your ability to repay, credit history and income all come into play. Everything you submitted to your mortgage broker is reevaluated by an underwriter.
Your loan may stay in the underwriting phase for a few days. In some cases, underwriting your loan may take weeks, or even months. - Once your loan is approved, your closing takes place. Your closing date is the day you complete the refinance of your home. It may take up to one week to schedule a closing.
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