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:
- You complete your loan application
- Your lender obtains pre-approvals for the types of mortgage loans you qualify for
- Your lender will give you your loan options once you’ve been pre-approved
- You choose the loan type you want out of the available options
- Now, you submit all documentation requested from your lender for the loan to process
- Within three days you’ll receive your loan disclosures, which must be signed and returned to your lender
- Your lender then brings in an appraisal company to appraise the home
- This appraisal company will schedule the appraisal
- Your lender orders the payoff statements for all mortgages to be paid with the refinance loan
- Your lender orders a title search for the subject property
- Your lender gets the appraisal report and title report
- Your lender creates the loan file and sends it to a processor
- The processor reviews the loan file and makes requests of you for any incomplete documentation or information
- The processor then submits the loan file to underwriting
- An underwriter now reviews the loan file and requests any additional information needed for your final approval in the form of a stipulation sheet
- The processor and your lender will receive a stipulation sheet from the underwriter
- Your lender contacts you in regards to the stipulation sheet and asks for the additional information, if any, that is needed
- Your lender forwards the additional information to underwriting
- The underwriter grants the final approval provided everything is in order
- A closing date is scheduled
- A final loan document is created and sent to the person or party who is closing the loan
- You now show a state ID, sign the loan document, and receive copies of all documentation signed at closing to keep for your records
- A three-day rescission period begins and you can cancel your mortgage loan at any point during this time should you change your mind
- 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
- Your mortgage refinance is now complete
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