Here’s a quick overview of the Refinance Process, from application to close from the best refinance mortgage lender in Cape Coral
- The Application: After we determine that a refinance will be beneficial for you, we start the application. Much like your original mortgage application, this one collects general information and asks for documentation of your income and assets.
- Processing: Next, we’ll gather property information with an appraisal, title reports and proof of property insurance. We’ll also request a credit report and verify your income and assets.
- Underwriting & Approval: The underwriter makes sure all loan guidelines are met or exceeded by verifying the information we’ve provided. A long checklist of factors must be satisfied during this stage. Additional documentation may be requested or “conditions” may be placed on the approval. Ultimately, the underwriter is held responsible for the decision made on a loan and must assure that anyone else picking up the file would come to the same conclusion.
- Closing/Funding: After any conditions placed on the approval have been satisfied, your loan is cleared for “docs” or closing. Your closing package will be compiled, a preliminary HUD-1 settlement form will be approved, and then your closing will be scheduled and completed. On loans for primary residences, a three-day rescission or waiting period must transpire between closing and the funding of the new loan. After the rescission, your old loan will be paid off and your new loan will start.
- Every property and situation is unique. Many small steps may occur within the four categories, and even a small issue could temporarily derail the process. Things may have changed since you originally financed your home, and the documentation needed today may be more extensive than it was then. Please realize lenders must take steps to satisfy guidelines that are designed to protect you and everyone else along the way. Things may not always seem to make sense, yet going with the flow will always be easier in the end.
Do’s and Dont’s
Continue to make your regular payments. However, if you have a payment due just prior to your scheduled closing, consult with me first. It may be best to pay at the closing rather than to risk having the payment and payoff letter cross in the mail.
Prepare your home for the appraisal. The appraiser will take photos inside and out. While a messy house is not really worth less than a clean one, property appraisal is part art, part science. First impressions can make an impact with an appraiser just as with a prospective purchaser.
Keep your ongoing paystubs and bank statements available. Underwriters may request the latest documentation before loan approval or as a condition of loan commitment.
Understand that things have changed. Underwriters require more documentation than in the past. Even if requests seem silly, intrusive or unnecessary, please remember that if they didn’t need it, they wouldn’t ask.
Apply for new credit. Changes in credit can cause delays, change the terms of your financing or even prevent closing. If you must open a new account, please consult with me first.
Change jobs during the process. Probationary periods, career or even status changes (such as from a salaried to a commissioned position, leave of absence or new bonus structure) can be subject to very strict rules.
Make undocumented deposits. Primarily large but sometimes even small deposits must be sourced unless they are identified. Make copies of checks and deposit slips. Keep your deposits separate and small. Avoid depositing cash.
Start any home improvement projects. Small cosmetic projects like painting are not usually a problem. Anything that can disrupt functionality can be an issue if undertaken before the appraisal. Delay projects that require a building permit, involve a bathroom or kitchen renovation, or create structural changes.
Ever be afraid to ask questions. If you’re uncertain about what you need or what you should do, I’m here to help you through the process.
Together, we’ll get you on your way to saving money and achieving your goals.
We are now serving the Fort Myers, Lehigh Acres, Cape Coral and Labelle areas for your local refinance needs.