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 business days from application.

Is There a Big Difference in
Loan Processing between Lenders?

Yes!

There are many tasks that a lender must perform in order to achieve a successful and efficient loan process from application to closing.

The goal for the successful lender is to complete a quick and seamless closing, make the process easy for the borrower, and to provide an open clear channel of communication to/from their client.

We will discuss three crucial areas that provide a borrower with the greatest assurance for an efficient, easy, and stress-free home loan closing.

• Dedicated Processing Team
• Technology/Coordination
• Customer Communication and Ease

Dedicated Refinance Loan Processing Team

Not all lenders have a dedicated loan processing team. In fact, many lenders require their loan officers to complete a majority of the loan processing. This is not good for the borrower.

Home loan processing is a specialized skill. It requires systems knowledge, bank/investor program knowledge, process-flow organization, a solid understanding of investor underwriting guidelines and conditions, as well as a high degree of familiarity with title company procedures and state compliance requirements.

The refinance processor becomes the central hub for your home loan once your application is complete and your program is locked.

An experienced and dedicated home loan processor can mean the difference between Delays, Rate-Lock Expiration, Loan Denial ... and a Fast and Easy Home Loan Closing!

It is in the best interest of the borrower to have their loan in the hands of a specialist for processing, not the loan officer that sold the loan.

Loan Processing Technology and Coordination

Technology and coordination plays a pivotal role for today's most efficient loan processors. You know what they say . "Timing is Everything" .. and such is the case for loan processing.

Once a borrower loan application is complete, a whole chain of activities must be completed within a set timeframe in order to achieve a successful closing. Document retrieval, order of title, order of appraisal, order of pay-offs, compliance documents completion, underwriting stipulation satisfaction, pre-closing and closing coordination, among others must be completed.

Lenders utilizing a sophisticated contact relationship management loan processing software afford their borrowers a clear advantage over those that use outdated process procedures. With this technology, the entire current process-flow for any specific loan is available to all that require access. Timelines, task completion dates, deadlines, and notes are made instantly available. What's more, many of the tasks and reminders are automated to ensure timeliness.

Add this technology into the hands of a dedicated processing team and it is undoubtedly the best scenario for the processing of your home loan.

Customer Communication and Ease

It's all fine and dandy to have a dedicated processing team and state of the art technology, but what about the customer?

Most borrowers don't want to know each minute detail of the processing of their home loan, but usually want to know how their refinance is proceeding at any given point and time. Customers also want and deserve a simple and efficient process on their end. Lenders that utilize CRM software and promote a clear channel of communication give each borrower exactly what they want.

Customers receive a login and password to their very own site. There they can see all steps completed, and which steps still need to be completed for their home loan from application straight through to closing! They can login 24-7 and quickly access contact information, should they have any questions.

This system makes the home loan process easy for the customer, while providing clear communication access for the borrower.

Need Help With Your Home Refinance?

Refinance Questions?

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 Refinance Rate Quote if you are looking to refinance now and need refi rate quote comparisons. We are glad to assist and will respond promptly.

We Are Here To Support You!

Call: 888-850-9888
to speak with one of our loan advisors now.

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