How to Refinance a Mortgage
- posted 9.1.2016
- Nicole Johnson
- Home Loans
Refinancing your home is, in many ways, a similar process to qualifying for a mortgage. Depending on which refinancing loan option you choose, the list of required documents may change, but generally, you'll need to submit:
- Proof of Income: In order to qualify you for a loan, you'll need to show original pay stubs for the last 30 days.
- Copy of Homeowners Insurance: Verifies that you have current and sufficient coverage on your home.
- Copies of Your W-2 Forms: Verifies past employment and income history.
- Copies of Asset Information: These can include statements of savings, checking and 401k accounts and investment records for mutual funds or stocks.
After you've turned in all the necessary materials to refinance your mortgage, underwriting will review the required paperwork, coordinate a home appraisal, and evaluate your credit in order to determine if you're eligible for the loan.
An important part of refinancing a mortgage is getting a home appraisal. This is simply a written estimate of the value of your home, which lenders use to determine what type of loan you qualify for.
Closing Your New Mortgage
Once you're approved for your new mortgage, the closing process can begin. At that point, the new mortgage becomes your official mortgage of record and the refinance is complete. Your old loan will be paid in full, and you can begin payments toward your new loan.