Typical Refinance Loan Process

Learn the steps in a typical refinance loan process for a Fast and Stress-Free Closing.

We will run though the typical refinance loan process from start to finish. The steps are really not complicated at all, and closings can occur in as little as ten business days from the time of application.

Refinance Home Loan Process

• A mortgage professional consults with you to discuss your goals and needs regarding your refinance. He or she will take your application and gather your home, credit, and income information to get you pre-qualified.

• Your loan officer will then discuss your various options and associated program details, and you will decide whether to choose a particular loan program option and to proceed with a loan-submission. You will also receive a "Good Faith Estimate", which details the estimated interest rates and costs associated with the loan.

• If you decide to go ahead with the loan submission, an appraisal will need to be ordered. Lenders require an appraisal to determine the market value of your home. An appraisal is usually valid for 90 to 120 days for most lenders.

• You will need to forward associated documents, such as W2's, pay stubs, current mortgage coupons, etc., depending upon submission requirements for the particular program applied for.

• Your loan officer send required State Disclosures for your inspection. These will need to be signed by the borrower and any co-borrowers and be forwarded to your loan officer. The disclosures are for your information and do not obligate you to complete the loan. You should always ask about any details you are not clear about.

• Your loan is submitted to the lender along with the supporting documents for approval. The lender's underwriter reviews your submission to make sure the criteria for the particular loan program is met. A loan-approval is issued after satisfactory review by the underwriter.

• The title company then prepares the final settlement statement (HUD) and a closing date and time can be scheduled. A closing agent will then meet with you at the scheduled closing date and time (usually at your home) to go over the final paperwork. The borrower and any co-borrowers will then sign the required documents upon satisfactory review of the finalized loan details and the closing is complete.

• You will have a 3-day "right of rescission" after the closing, and the loan will fund on the 4th business day after closing.

Now that wasn't so bad after all, was it? The refinance loan process can appear intimidating and time-consuming at first glance, but is really a logical straight-foward process once broken down into its component parts. The loan process is typically quick and efficient with closings in as little as 10 days from application.

Need Help With Your Home Refinance?

Refinance Tool Box refinance mortgage professionals are also available for help 24-7, at no cost, should you have any questions regarding home refinance, debt-consolidation, or home equity loans. Request a Free Rate Quote if you are looking to refinance now and need rate quote comparisons. We are glad to assist and will respond promptly.

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