Choosing to refinance your mortgage is a major financial decision.
Choosing Your Lender.
Choosing to refinance your mortgage is a major financial decision. Being prepared with the right knowledge, the necessary documents, and the right lender will help make the process go smoothly.
These are some important questions you should ask when choosing a lender for your refinance:
Will you sell my loan to another company after closing, or service it?
Not all lenders service their loans after closing. You may want to choose a lender that
services their loans for the life of each loan – so you know the handling of your loan
won’t change
We do not service any loans. So we do not want that to be a big deal. Most of our
lending partners do service loans, but we really have no way of knowing if they will
keep the loan or sell it off to another entity.
What’s your availability?
You may find that you need to have someone available to answer your questions,
even outside of normal business hours.
What are your fees and rates?
Different lenders often have significant differences in their fees and rates. It’s usually a good idea to shop around to find the lender with the fees and rates that best fit your situation. However, keep in mind that the lowest possible rate may not equate to the best possible mortgage experience.
How is your client satisfaction rating?
You may be dealing with a lender for as long as thirty years, so it’s important to check feedback from other clients to verify that working with your lender will be as pleasant as possible.
Will I need to go to a branch, or can I complete the process online?
Having to drive to a branch whenever you need to submit documents can end up taking a lot of your time. Choose a lender who makes the process as easy and efficient as possible, especially if you are short on time.
How long with the process take?
If you need to close on your refinance quickly, you should find a lender who will make your
loan a priority.
Documents Your Lender Will Need
You’ll want to get your financial documents ready before you apply, to ensure your
refinance will close as quickly as possible. These are some things your lender will likely request:
- Your W-2s from the past two years
- Your bank statements from the last two months
- Your last two pay stubs
If you are applying for the refinance with someone else (such as your spouse), your lender will want these documents from them as well, to assess the complete financial situation of everyone on the loan.
If you are self-employed, you’ll be required to provide more documents to show your income. Many lenders will want to see your complete tax returns from the last two years, so they can assess exactly how much you make and how much you spend on your business.
Costs Involved in a Refinance
You’ll generally have to pay these fees when refinancing:
Application fee
This is the cost you pay to your lender to process your application. With most lenders, you’ll have to pay this even if your loan isn’t approved. However, Discount Loans never charge and application fee to begin with so this will not apply if you’re using our loan services.
Appraisal fee
Your lender will most likely want you to get an appraisal, so they have an accurate and current value for your home. In certain cases, such as a streamlined refinance, your lender might be able to waive the appraisal.
Inspection fee
Certain loan types will require an inspection.
Attorney review and closing fee
This covers the costs of the lawyer who will conduct the closing for your lender, but keep in mind that not all states require a lawyer to close. For instance, Florida is not an attorney state. You can choose to close with an attorney but most deals in Florida close with Title Companies.
Title insurance and search
A title search is frequently required to ensure your home has no liens and that you are the rightful owner. Title insurance is a one-time cost that protects you and the lender against potential problems with the title to the property caused by a previous owner.
When you apply for refinancing, your lender will provide you with a Loan Estimate, which will give approximate costs and fees of your loan. Before closing, you’ll be provided with a Closing Disclosure, with a detailed breakdown of the exact final costs and fees.
How Long Will the Refinance Process Take?
Generally a refinance will take between 30 and 45 days, but there are quite a few variables that can cause it to take longer. Delays can come from any third parties that are involved in the loan transaction. Your lender will usually work with a number of third parties, including title companies, appraisers, and inspectors, to close your loan, so be aware that delays can happen as your lender works to get the necessary information from these other parties.
The length of your refinance can also be shorter or longer, depending on the specifics of your situation. If there are mistakes on your credit report, this can hold up the process. And changes in your financial situation, employment, or other aspects of your life can also cause delays. For example, if you open a new line of credit or change jobs in the middle of your refinance, it could push back your closing date. Keeping your lender updated on any changes in your life is the best way to minimize the delays that such changes might cause. Every lender is different though, 247 HomeLoans typically close 90% of refinances within 30 days with no issues.
Locking in Your Interest Rate
You will have the option to lock in the interest rate on your refinance once you’ve completed your application. Interest rates change every day, so locking in your rate protects you in the event rates increase significantly before your closing.
Generally, lenders allow you to lock in your rate for thirty, forty-five, or sixty days. You may have to pay a fee if you need to extend the time beyond what you and the lender initially agreed upon.
Why Choose Us?
Our coordinated team can get your loan processed faster than the competition – guaranteed.
Our personable and extremely knowledgeable loan officers will walk you through your first home buying experience so smoothly, your worries will be left behind.
Licensing and Approvals
247HomeLoans.net holds a Florida Mortgage Brokers license number MBR1749, in the State of Florida. NMLSR ID #1082016. 247HomeLoans.net is a full-service Mortgage Broker. We are committed to providing the highest level of customer service with an emphasis on offering our customers the best advice to save on their monthly expenditures. We are set up with over 20 wholesale lenders and banks, so we can offer both traditional and nontraditional mortgage products. Even if you have been denied by traditional banks we may be able to help you secure financing.
Corporate Office is located at:
11256 Winthrop Main St.
Riverview, FL 33578
**DISCLAIMER: Please note that interest rates, APR’s, closing cost, and monthly payment examples on this page are for illustrative purposes so that borrowers can better understand how programs work. Consumers should note that mortgage rates, APR’s, and payments will likely vary from what is listed in the examples given. Mortgage rates change frequently and not all borrowers will be eligible. Additional restrictions may apply. Please call and speak with a 247 Home Loans mortgage representative for the most up-to-date information.
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