The Loan Process – Refinancing a Home
The loan process to refinance your home loan is comparable to the process you go through to purchase a home. There is usually less drama because, lets face it, you already have your home!
Prior to the beginning of the loan process, you are going to talk to one of our loan officers. Our loan officer will help you get to the bottom of what your goals are with the refinance. You should provide a copy of your most recent mortgage statement so that your loan officer can accurately gauge what your loan payoff will be as well as your taxes and insurance.
After speaking with your loan officer, reviewing estimates, and deciding on an option you can begin the loan process.
LOAN APPLICATION / LOCK YOUR INTEREST RATE
Your loan officer will get your rate locked as soon as you have decided on a loan amount and rate that is acceptable. From there they will generate a loan package that you will need to sign either face-to-face or electronically. There are supporting documents that you will need to provide just like for your purchase. Below is a generic list, but contact your loan officer to get a list specific to your particular situation.
- Most recent 2 years W2/1099 forms
- Most recent 2 years Federal Tax Returns (All Pages)
- Most recent month’s paystub(s)
- Most recent 2 month’s statements for Checking, Savings, and Retirement accounts (All Pages)
- Copy of your driver’s license
- Homeowner’s Insurance Agent’s name/number
Following the receipt of all this supporting documentation and the signed loan package, you loan officer will submit your loan to the underwriting process.
LOAN FILE SETUP / INITIAL UNDERWRITING APPROVAL
Prior to your file being reviewed by an underwriter there are a series of checks and verifications that are ordered in loan setup. Your SSN will be verified with the Social Security Administration, your tax returns will be compared to what the IRS has on file, and we will verify your employment directly through your employer. We will also order the appraisal of your home at this stage. With certain types of loans other verifications will be ordered depending on the program guidelines. We also do a second review of all the documentation provided and see if anything else is needed from you prior to submitting the loan to the underwriter. After all of this has been completed the loan is submitted to the underwriter for review.
The underwriter’s job is to review what has been submitted and ensure that it meets the agency or investor’s loan guidelines. Assuming that your loan does, the underwriter will issue an initial credit approval. This initial credit approval will contain a list of conditions that have to be met in order for the loan to be final approved.
GATHERING CONDITIONS / RESUBMITTING FOR FINAL UNDERWRITING APPROVAL
You will be contacted by your loan officer or your loan specialist after the initial approval is in. At that point they will have a list of just about everything needed to final approve the loan. They will ask you for these items, and the sooner you return them the sooner the file can be submitted for final approval. Keep in mind that often you will provide documentation (typically asset documentation) that can bring up additional questions and require further documentation.
Once all the documentation has been gathered, the file will be resubmitted to underwriting for final approval. Our goal at Uptown Mortgage is to only have two iterations (submissions) to underwriting to get your file final approved.
LOAN FIGURES / LOAN DOCUMENTS / FINAL VERIFICATIONS
Once your file is final approved by the underwriter, the first thing that we do is send loan figures to the title company. This enables the title company to draft a final HUD Settlement Statement so that you know what the final figures are. At Uptown Mortgage we guarantee that we will get your figures to the title company at least 3 days before your closing.
Before our company is able to release loan documents to the title company, we have to re-verify that you are employed and also that you have not opened any new loans, credit cards, or other debts. Once this has been re-verified we will release the loan documents to the title company.
Closing for a refinance is easier than when you closed on your purchase. The title company closer will even come to your home to make the closing process easier. There is not terribly much required from you as a borrower aside from showing up and signing everything. All of the hard work has been done at this point.