The Refinance Loan Process

Refinancing your mortgage means paying off your existing mortgage with a new loan. The refinance process is similar to when you first got financing for your home, and many of the costs will be the same.

Consult and apply for a refinance loan

Our Solano Mortgage advisors will help you determine what you want to accomplish with your refinance, and let you compare loan programs side by side. Once you have selected the program that best suits your needs, you will apply for a new mortgage loan.

Documents to provide for a refinance loan

When you apply for a refinance, you will provide personal information to the lender verifying your personal assets and debt. To expedite the process, you will want to start gathering the following items for all borrowers on the loan:

• Income Statements: W2’s from the last two years, or signed copies of the last two year’s tax returns if self-employed. Self-employed borrowers should also bring profit/ loss statements or balance sheets for the current year
• Asset Information: Most recent bank statements, most recent 401ks, IRAs, mutual funds and securities account statements
• Current Mortgage Information: Contact information for the original lender, a copy of your current payment coupon, and the outstanding mortgage balance on the existing loan
• Homeowner’s Insurance: The name of your Homeowner’s insurance company and their contact information

1. Get Pre-Approved

This is the time to get in the know. A pre-approval will give you an advantage when you find your perfect home. We can tell you what you need to get pre-approved, so you know the exact loan amount you qualify for, what your monthly payment will look like, and how much taxes and insurance will be. With a pre-approval, the loan process will be smoother and your offer will be stronger.

2. Select Your Loan Program

Fixed rate? Adjustable? FHA? There are multiple loan options that may fit your unique needs, and we can help you choose. Are you looking for the for the consistent rates and payments that a fixed rate loan can provide? Do you want the short-term benefits of lower rates that an adjustable rate loan can bring? Our extensive portfolio of loan options means you have more options available to get just what you need.

3. Loan Application

Your application will provide a complete picture to loan investors of your assets, debts and what you are buying. You will need to provide documentation, including a photo I.D., pay stubs, proof of income, tax returns, employment history, and information on all debts, assets, and sources for down payments. Don’t worry, we will let you know exactly what is needed for the loan application so you can be fully prepared.

4. Processing and Underwriting

Your loan has specific investor guidelines that must be met, and an underwriter will review your documents to be sure that you meet them. While an underwriter reviews your file, an appraisal will be ordered on the home. Additional information may be requested, so don’t panic if you have to turn in more documents. That’s just the underwriter working hard to get your final approval.

5. Loan Approval

Before your loan is approved, you will receive pre-approval and a list of closing conditions that need to be met. These conditions can include verification that your employer is current and proof that homeowner’s insurance has been obtained. Once closing conditions have been satisfied, the underwriter issues a clear to close. Congratulations, your loan has been approved!

6. Close the Loan

With an approved loan, you are on the home-stretch towards closing. The lender will send closing documents to a title company that draws up paperwork and arranges for signing of documents. Once the documents have been signed and funding conditions have been met, the title is recorded and the process is complete. You are a proud owner of your new home, and the keys are yours!