Standard Documents Needed
As with all mortgages, documentation requirements will vary based on the borrower profile, as well as the type of refinance you are doing. This is covers the basics of what you can expect to be asked for.
2 most recent pay stubs
2 most recent years of tax documents (returns, W-2’s, K-1’s, etc)
Most recent mortgage statement
Copy of homeowners insurance declarations page
Copy of valid state issued photo ID
Most recent statement for any debts being consolidated through the refinance
Refinance Loan Cycle
Refinance Cycle Explained
Pre-Qualification: Your Loan Originator will work with you to better understand your goals with refinancing. Whether it’s decreasing your interest rate/loan tern, or using equity for cash or debt consolidation, they will gather information to structure a customized loan that meets your needs. They will also start to collect needed documents and pull credit.
Complete Loan Application: You and your Loan Originator will finalize your loan application. You’ll submit all of the requested documentation and be issued your disclosures, including your initial loan estimate which outlines the preliminary estimated costs. The loan will be submitted to Underwriting, and an appraisal will be ordered if needed.
Conditional Approval: The Underwriter will review your loan package, and issue a conditional approval. The conditional approval is basically a checklist of required items for the Loan Originator, Loan Processor and you to provide in order to receive final loan approval/clear to close.
Clear to Close: You have successfully worked with your Loan Originator and Loan Processor, proving all of the required documents. The Underwriter has cleared all conditions and issued a clear to close. Your loan closing will be scheduled and the lender will work with the Title Company to finalize your loan figures.
Closing: In most cases, a refinance is closed by a notary in the comfort of your home. The notary will bring all of your closing documents with them and you will sign the loan documents. If you are refinancing a primary residence, there will be a three day right of rescission before the loan funds. At the time of funding, the title company will either mail you a check or wire funds to your bank account for any cash back.
To make sure you receive the best value with your refinance, use the Refinance Savings Worksheet provided to estimate your monthly, annual and long term savings.