Whether you're looking to lower your monthly payments, secure a better interest rate, tap into your home's equity, or change the terms of your loan, refinancing can provide a pathway to achieve your financial goals!
Learn the benefits
Some Key Reasons to Refinance
Reduce current loan term or get a better loan type
Take advantage of lower interest rates
If interest rates have significantly dropped since you obtained your original mortgage, refinancing can provide an opportunity to secure a better interest rate. A lower rate can lead to substantial savings* over the life of your loan, potentially reducing the overall cost of homeownership!
Cash out or use money for home improvements
Consolidate your debt
Adjust to a death or divorce
**Applicant should not assume that any debt will be eliminated by refinancing since the debts are consolidated into a new loan.
The Refinance Process
Refinancing a mortgage basically follows the same steps as a first-time mortgage loan process -- minus involvement of realtors, so it tends to be faster. Here are the general steps for the refinancing mortgage loan process:
Get prequalifiedSit with one of our loan officers and they can help you determine the home price range you want to look for, based on your credit, income, and assets.
ApplicationYou'll fill out a refinancing application for a specific loan amount. Your loan officer will help find a product that fits your needs. You'll want to provide any/all documentation needed, as soon as possible
File openingWhen your documentation comes back in, we'll order the title, appraisal, and tax transcripts. Your initial employment verifications (if applicable) are completed. Flood certificates (if applicable) are obtained, and then your file moves into processing.
ProcessingThe lender reviews the initial file and verifies that sufficient information has been provided. Your file is submitted to underwriting.
UnderwritingThe underwriter ensures your loan meets all guidelines, then issues an approval with any outstanding conditions, or a Mortgage Commitment if only minor conditions remain.
From approval to Clear to CloseYour processor will work to obtain any documentation to clear any remaining conditions. This is resubmitted to underwriting, where it is reviewed, and when cleared, the underwriter issues a Clear to Close. With this in hand, the file moves to the closing department.
FinishOur closing department and closing agent work together to finalize numbers. There is a final verification of all debts, employment, and assets used for closing. Closing documents are drawn up. You'll meet with the closing agent, sign the documents, and receive a check!
Will I Need an Appraisal?
An appraisal is an important step in the refinancing process as it helps determine the current market value of the property. Most commonly, the Loan-to-Value (LTV) ratio generally determines if a property appraisal is required when you are seeking to refinance. In some cases, however, a Property Inspection Waiver (PIV) may be obtained to avoid an appraisal.
As professional mortgage professionals, we are happy to discuss specific appraisal requirements and provide clarity on whether an appraisal is necessary for your particular refinancing situation. Reach out to us today!
Should I Refinance?
Whether you're seeking to reduce your monthly payments, access cash for important purposes, or optimize your loan terms, refinancing can open up a range of financial possibilities.
At Elite Mortgage Group LLC, we can help you determine if now is a good time for you to refinance. We're here to guide you through the refinancing process, help you understand your options, and enable you to maximize the benefits of refinancing.