The Refinance Process: A Step By Step Guide

If you’ve never refinanced before and are interested in doing so sometime soon, then you’d probably like to know all the steps involved in this process. Here are those steps in their entirety, from start to finish:

1. You complete your loan application
2. Your lender obtains pre-approvals for the types of mortgage loans you qualify for
3. Your lender will give you your loan options once you’ve been pre-approved
4. You choose the loan type you want out of the available options
5. Now, you submit all documentation requested from your lender for the loan to process
6. Within three days you’ll receive your loan disclosures, which must be signed and returned to your lender
7. Your lender then brings in an appraisal company to appraise the home
8. This appraisal company will schedule the appraisal
9. Your lender orders the payoff statements for all mortgages to be paid with the refinance loan
10. Your lender orders a title search for the subject property
11. Your lender gets the appraisal report and title report
12. Your lender creates the loan file and sends it to a processor
13. The processor reviews the loan file and makes requests of you for any incomplete documentation or information
14. The processor then submits the loan file to underwriting
15. An underwriter now reviews the loan file and requests any additional information needed for your final approval in the form of a stipulation sheet
16. The processor and your lender will receive a stipulation sheet from the underwriter
17. Your lender contacts you in regards to the stipulation sheet and asks for the additional information, if any, that is needed
18. Your lender forwards the additional information to underwriting
19. The underwriter grants the final approval provided everything is in order
20. A closing date is scheduled
21. A final loan document is created and sent to the person or party who is closing the loan
22. You now show a state ID, sign the loan document, and receive copies of all documentation signed at closing to keep for your records
23. A three-day rescission period begins and you can cancel your mortgage loan at any point during this time should you change your mind
24. After the rescission period ends, the mortgage company is provided with your payoff amount, a new title is recorded and you also get any additional funds that were a part of the refinance
25. Your mortgage refinance is now complete