Mortgage Refinancing Checklist
Purchasing a home is one of the most impactful life decisions you can make. However, as circumstances change, so do available interest rates. If your home is perfect, but your mortgage rate isn’t, it may be time to refinance with a local independent mortgage broker.
Refinancing allows you to replace your current home loan with a new one that’s a better fit for your goals and budget. It can be a great option for homeowners who want to lower their monthly payment, reduce their interest rate, or turn built-up equity into liquid cash. Refinancing also works well for people who want to pay off their loan faster, replace an adjustable-rate mortgage with a fixed rate, or remove a co-borrower.
No matter your financial goals, knowing how to refinance your mortgage can help you seize an opportunity to put yourself in a better situation. Often people rush to refinance when mortgage rates drop, but it’s important to take stock of your circumstances and ambitions before making a decision.
Knowing your credit score, how much equity you have in your home, and how long you plan to stay can help you determine if the time is right.
Wondering how to refinance your mortgage? Use this mortgage refinancing checklist to keep the approval process on track.
- Search for a broker near you: Find a local mortgage broker at FindAMortgageBroker.com to discuss your options.
- Review your current mortgage: Know your outstanding balance, the number of years remaining, and your current interest rate.
- Identify your reason for refinancing now: Do you want to lower your monthly payment? Pay off your home faster? Pay off credit card or other debt? Fund a home improvement? Determine your goals so you can choose the right loan.
- Consider the refinancing cost: Talk to your mortgage broker about closing costs and fees so you can determine whether refinancing is a smart move.
- Have your mortgage broker pull your credit report: Make sure there are no errors on any of the credit bureau reports. A higher score may qualify you for a lower rate.
- Review your loan options: Your mortgage broker can review loan rates and term options with you depending on your needs.
- Gather documents: Required documents typically include pay stubs, W-2s, tax returns, two months of bank statements, proof of homeowners and title insurance, and statement of assets and debts. As a reminder, many lenders can now electronically pull your income and asset statements, so ask your mortgage broker what you need.
- Relax: You’re in good hands with your mortgage broker who works on your behalf.
Remember, refinancing your mortgage requires an approval process similar to the one you completed to purchase your home. Partnering with your local mortgage broker means you’ll have an expert by your side from start to finish.
Find a mortgage broker near you today.