How to Do a Complete Refinance Loan
- 1). Contact a range of lenders. Shop around for the lowest rate and the type of mortgage that best fits your needs. Arrange an appointment to meet with local loan officers. Ask for a list of the documentation you need to provide and the amount of any application fees.
- 2). Decide what debt, if any, to include in the refinance. Any home loans must be included in a refinance but car loans, credit cards and student loans can also be paid off with loan proceeds. Most banks allow a homeowner to cash out up to 80 percent of a home's value during a refinance. Divide the total balances of your mortgage and home equity loans into the estimated value of your home. If the loan balances amount to less than 80 percent then you may have sufficient equity to pay off other debt.
- 3). Meet the loan officer. Provide your income verification, insurance, warranty deed, ID and a survey. If you do not have a survey, the lender will order one but you will be required to pay for it. The loan officer will ask you to sign a form consenting to have your credit score checked. Sign the form together with other general disclosures. The preliminary approval will take a few minutes after which the loan officer will quote you a number of rate options. The standard rate can be lowered if you are willing to pay points. Agree upon a rate and give the loan officer a check to cover the cost of the appraisal and any other applicable fees.
- 4). Arrange a second meeting. Review the results of the appraisal and confirm a final rate and loan amount. Set the date for a loan closing.
- 5). Go to the closing. Before the closing, you should ask for a HUD statement that itemizes the fees and costs involved in the refinance. You will sign a final copy at the closing. Make sure the figures are correct and sign the closing documents.
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