There are many reasons you may want to refinance your mortgage. Regardless of the reasoning for the refinance, if you do not handle things in the proper order you could end up spending time and money with no benefit to you.
The first and most important part of the Refinance process is clearly communicating with your mortgage professional during the application process. The better we understand your situation and your plans for the future, the better we can help you achieve your goals. After the application is complete and we obtain all necessary documentation we will submit the file for underwriter approval.
Once you have completed the application process and have the terms of the financing worked out then it is time to order an appraisal. Appraisals for a single family home cost between $400 and $500 on average. Make sure your financing options meet your needs prior to making the financial commitment for an appraisal.
Now that you have an appraisal and we know exactly what the property is worth, we can make any needed adjustments to the loan file. Any changes to the loan The appraisal and any changes to the loan file will then be reviewed by the underwriter once again for final underwriting approval.
Upon receipt of the loan approval conditions, one of which being the appraisal, we can now submit your loan for final underwriting approval. Any changes to the loan amount based on your appraised value can be completed at this point.
Once we have final underwriting approval the lender will produce and deliver the final loan documents to the Escrow company. Now you are ready to sign.
After signing the final loan documents with the Escrow company, they send the signed loan documents back to the Lender. At this point the transaction is officially complete but there is one catch. If your are refinancing your owner occupied primary residence then there is a 3 day rescission period that must take place by law. That means the loan cannot fund until the fourth day after signing. For example, if you signed on a Monday the earliest you could close would be Friday. The Lender then wires the funds from the new mortgage to the Escrow company who disburses the funds as needed and transfers the Deed to the County Recorders office.