So your either considering Mortgage Refinancing or trying to learn more about it. Refinancing is when you get a loan (secured) to pay down an old loan. In this case, “mortgage refinancing” thus meaning to pay off your old mortgage. This most often happens to get a lower rate of interest or to get some cash out to do other things with from the equity your home provides. There are a few steps that one goes through during the mortgage refinancing process.
You obtain and then complete the loan application that is in front of you.
You then are presented from the loan consultant the different mortgage/loan offers.
Once you choose what one you will go for, there will be some documentation that will be needed to start it.
After a brief period of time you will receive the various disclosures (legal information, terms etc) to which if your in agreement, you sign and return them to your loan consultant.
Upon the loan consultant receiving this information he or she will set up an appraisal company to contact you about appraising the value of your home. This must be done so that the loan is secured against the pre-determined value of your home.
You sit back a little, as your loan consultant does the work to order the payoff of your old loan with the new one and a title search and processes the loan file.
The underwriters then obtain the information from the loan consultant and either approve it or request any additional information they may need. If they need more information, they will get a hold of your loan consultant to get in contact with you. Then if all goes well, the final approval is given and a closing date is scheduled.
The final document is sent off to the title company, notary public, or lawyer who is closing it. You then sign any final documents, provide id, etc.
During the next three days, you have the right to cancel your new loan agreement.
The mortgage refinance process is completed and you have successfully refinanced your mortgage.