Mortgage Refinance Checklist

Last Updated 4/13/2015

The mortgage refinance process can seem overwhelming to a homeowner. It does require many steps and can seem like a lot on top of your everyday responsibilities. This mortgage refinance checklist will break down the mortgage refinance process for you.

1 – Have an idea of how much your home is worth and your current loan terms.

Before doing anything else, you should be aware of how much the principal balance is on your current mortgage, what rate you are paying, and the remaining term on the loan. You’ll also need a general idea of how much your home is worth. Knowing these figures will help you determine whether or not you have enough equity to refinance and if it’s even worthwhile to begin the process.

2 – Decide what type of mortgage product you’d like to refinance your loan into.

There are several mortgage products available in today’s market. Different homeowners have different financial needs. Do some research to see what mortgage products make the most sense for you.

3 – Review your credit report.

The next step is to take a look at your credit report. You’ll want to review it and make sure that there aren’t any red flags for lenders. You’ll want to apply with a strong credit rating in order to get qualified for the best rates available. Here’s an article on how to improve your credit score before applying for a mortgage.

4 – Compare lenders to see who has the best rates and terms.

To get the most out of your mortgage refinance you’ll need to do your research. Shop around different lenders to see who is offering the best rates and fees for the mortgage product you want. Read this article on finding the best loan rates to get the best deal.

5 – Put in your application with the lender you’ve chosen.

This is pretty self explanatory, call your lender or go on their website and submit your application. Speak with the lender about how long the process will take. Ask them what you can do to streamline the process.

6 – Collect necessary documentation for mortgage application.

Your lender will provide you with a checklist of documents that will be needed for your application. Be proactive about gathering all of the documents needed as quickly as possible. Providing necessary documentation upfront will allow time if anything should arise with the loan. If the lender has additional questions you have time to provide extra documentation without pushing back closing.

Some documents you’ll want to collect include:

  • Most recent pay stubs.
  • Previous years tax returns.
  • Most recent bank statements.
  • Current mortgage account information.

7 – Stay in close contact with your mortgage professional.

Mortgage refinances can have some obstacles along the way. Stay in close contact with your lender so that you can resolve any potential situations. Your mortgage professional can keep you up to date on the status of the appraisal and the underwriting and escrow process.

The mortgage refinance process can be stress free if you are proactive. Follow these steps and you’ll be well on your way to closing in no time and saving thousands of dollars.