Ready To Refinance?
The loan refinance process is very straightforward. We will get you there.
Refinancing your mortgage means paying off your existing mortgage with a new loan. The refinance process is similar to when you first got financing for your home, and many of the costs will be the same.
Consult and apply for a refinance loan
Our American Pacific Mortgage advisors will help you determine what you want to accomplish with your refinance, and let you compare loan programs side by side. Once you have selected the program that suits your needs, you will apply for a new mortgage loan.
Documents to provide for a refinance loan
When you apply for a refinance, you will provide personal information to the lender verifying your personal assets and debt. To expedite the process, you will want to start gathering the following items for all borrowers on the loan:
- Income Statements: W2’s from the last two years, or signed copies of the last two year’s tax returns if self-employed. Self-employed borrowers should also bring profit/ loss statements or balance sheets for the current year
- Asset Information: Most recent bank statements, most recent 401ks, IRAs, mutual funds and securities account statements
- Current Mortgage Information: Contact information for the original lender, a copy of your current payment coupon, and the outstanding mortgage balance on the existing loan
- Homeowner’s Insurance: The name of your Homeowner’s insurance company and their contact information
WHAT WILL IT COST TO REFINANCE?
Many of the costs to refinance your mortgage will be the same as when you first obtained financing. Many loan programs will offer low-cost or no-cost refinancing, and some of the fees or closing costs may be waived. Our advisors will outline the specific fees associated with your refinance by providing you with a Loan Estimate, which may include:
- Application Fee - The fee the lender charges to process the loan application.
- Appraisal Fee - The fee charged to determine the value of your home by an appraisal service.
- Credit Report - The fee charged by the lender to obtain your most recent credit report.
- Title Search and Title Insurance - Often times, having your current title company reissue a new policy can save you money on your title search and insurance.
- Survey - The lender may order a property survey. However, in some cases if no improvements have been made on the property, your lender may use your recent existing survey.
- Loan Origination Fee - Typically expressed as the “points”, a loan origination fee is paid by the borrower to the lender to underwrite the loan.
- Discount Points - A discount point may be paid by the borrower to the lender to secure a lower interest rate. One point is equal to one percent of the loan amount.
- Miscellaneous Fees - Fees paid for document preparation, notary fees, tax service fees, private mortgage insurance, and any VA or FHA loan fees.
- Prepayment Penalty - If your existing mortgage includes a prepayment penalty clause, paying the loan off early will require a percentage of the loan amount to be paid as a penalty.
Still have questions about the refinance loan process, documents required to refinance, or cost to refinance? Find an advisor near you who will gladly sit down with you and compare mortgage rates and programs, map out the refinance loan process, and tell you what to expect from beginning to end.
Our goal is to guide our customers confidently and clearly through the refinance process, making sure you accomplish your goals on time and on budget.
Ready to get started? Apply online today.
The Loan Process
This is the time to get in the know. A pre-approval will give you an advantage when you find your perfect home. We can tell you what you need to get pre-approved, so you know the exact loan amount you qualify for, what your monthly payment will look like, and how much taxes and insurance will be. With a pre-approval, the loan process will be smoother and your offer will be stronger.
Select Your Loan Program
Fixed rate? Adjustable? FHA? There are multiple loan options that may fit your unique needs, and we can help you choose. Are you looking for the consistent rates and payments that a fixed rate loan can provide? Do you want the short-term benefits of lower rates that an adjustable rate loan can bring? Our extensive portfolio of loan options means you have more options available to get just what you need.
Your application will provide a complete picture to loan investors of your assets, debts and what you are buying. You will need to provide documentation, including a photo I.D., pay stubs, proof of income, tax returns, employment history, and information on all debts, assets, and sources for down payments. Don't worry, we will let you know exactly what is needed for the loan application so you can be fully prepared.
Processing and Underwriting
Your loan has specific investor guidelines that must be met, and an underwriter will review your documents to be sure that you meet them. While an underwriter reviews your file, an appraisal will be ordered on the home. Additional information may be requested, so don’t panic if you have to turn in more documents. That’s just the underwriter working hard to get your final approval.
Before your loan is approved, you will receive pre-approval and a list of closing conditions that need to be met. These conditions can include verification that your employer is current and proof that homeowner’s insurance has been obtained. Once closing conditions have been satisfied, the underwriter issues a clear to close. Congratulations, your loan has been approved!
Close the Loan
With an approved loan, you are on the home-stretch towards closing. The lender will send closing documents to a title company that draws up paperwork and arranges for signing of documents. Once the documents have been signed and funding conditions have been met, the title is recorded and the process is complete. You are a proud owner of your new home, and the keys are yours!
*Tips for Success
- It is extremely important that you don’t make any major life changes immediately before or during the loan process.
- Don’t quit your job, change jobs, or become self employed.
- Don’t make any large purchases like a vehicle or furniture.
- Don’t co-sign on any loans for someone else.
- Don’t spend money that you have set assigned for down payment or closing costs.
- Don’t make any changes to your credit like opening new cards, spending on cards, or even closing accounts without guidance from a professional.
- Don’t panic! The loan process can seem daunting, particularly if it is your first time. We will help you understand what is needed and to get you to the finish line.
NMLS CONSUMER ACCESS LINK: NMLS #1850
All information contained herein is for informational purposes only and, while every effort has been made to ensure accuracy, no guarantee is expressed or implied. Any programs shown do not demonstrate all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products may not be available in all states and restrictions apply. Equal Housing Opportunity.