Home Loan Refinance Process

03/10/2018

Whether you’re a seasoned homeowner considering refinancing for the first time or simply curious, this guide is for you. Understanding the refinancing process is crucial in making informed decisions, potentially saving you thousands of dollars, and leading you closer to financial freedom.

The Application: After determining that refinance will be beneficial for you, we can start the application which is very similar to the original application once you bought the house. Your loan officer will collect the initial documents which could consist of assets, income, and other verification.

Processing: Next, it’s getting the processing started which is gathering the homeowners insurance, title, ordering the appraisal, and ordering all other verifications.

Home Loan Refinance Process

Underwriting and Approval: The underwriter will review all the provided information and documentation to make sure they do meet the lending guidelines. Additional documentation may be requested during this process as the underwriters are held responsible for the decisions they make and have to make sure anyone else picking up the file comes to the same conclusion.

Closing/Funding: After all the conditions are met, underwriting will give us the clear to close and green light to move to the final step. The closing package will compile all documents and provide us with the closing disclosure which you have to approve 3 days before closing (business days as Sundays don’t count). There is a THREE DAY RECISSION OR WAITING PERIOD and after these three days your Home loan will be funded and your old loan will be paid off.

Every situation is different, and many small steps will accrue between these 4 steps. Please realize we all have a common goal, and that is to get your loan closed and funded with the best options as we value our client’s business and their investments. Additionally, it’s important to consider the refinance cost associated with each option to make an informed decision about your loan.

Don’t hesitate to connect with our mortgage loan originators via phone or email for any inquiries. Additionally, spare some time to navigate through our detailed mortgage refinancing page.


FAQs for Home Loan Refinance Process


What is the first step in the refinancing process?

The first step in the refinancing process is the application. After determining that refinancing is beneficial, you can start the application, which involves collecting initial documents such as assets, income, and other verifications, similar to the original home loan application.

What happens during the processing stage of refinancing?

During the processing stage, your loan officer will gather homeowners insurance information, order a title search, arrange for an appraisal, and complete other necessary verifications. This ensures that all relevant information is accurate and up-to-date for underwriting.

What is involved in the underwriting and approval process?

In the underwriting and approval process, the underwriter reviews all provided information and documentation to ensure they meet lending guidelines. Additional documentation may be requested to ensure all criteria are met. The underwriter’s job is to make sure anyone reviewing the file would reach the same conclusion.

What should I expect during the closing and funding stage?

During the closing and funding stage, once all conditions are met, underwriting will give the “clear to close.” You will receive a closing package with all necessary documents and a closing disclosure, which you must approve three business days before closing. After a three-day rescission or waiting period, your new loan will be funded, and your old loan will be paid off.

USA Mortgage Abadi Region

USA Mortgage Abadi Region

A full-service mortgage lender with local branches in Missouri, Arkansas, Illinois, and nearby areas.