To refinance your mortgage, locate a lender with services that match your financial goals, and upon identifying the lender, complete an application, which requires current income statements, home value, credit scores, current debts and desired loan amount. Upon acceptance, review and agree to loan terms.Continue Reading
Gather and review mortgage lenders who specialize in refinancing. Financial institutions, such as banks and credit unions, typically offer mortgage refinancing options. Select a lender that meets your financial goals and requirements.
Much like the initial mortgage loan, refinancing requires proof of income, current debt information, employment verification and property value paperwork.
Complete the loan application, and submit it with the supporting documents. Make sure to apply for an appropriate loan based upon your refinancing needs. For example, loan applications to refinance interest rates may be different than a loan package designed to adjust loan duration.
After reviewing your initial application, mortgage lenders compare your home value against your requested loan amount, also known as the loan-to-value ratio. If this ratio falls within the lender's acceptable range, you receive a loan offer. If this ratio is too low, or your supporting documents don't meet the lender requirements, the application may be denied.
If approved, carefully review the loan offer. Be prepared to pay refinancing fees associated with taking out a new loan and paying off your current loan.
After reviewing the loan offer, accept or refuse the loan in writing.