Refinance Checklist that you need to go through to complete a loan application
Completing a loan application is the first thing you’ll do when you refinance your mortgage. You may also need to provide a variety of documentation to help your mortgage lender approve you to refinance your home loan. The documentation will vary depending on the lender you choose, your loan program, and your personal financial situation.
The following is a list of documents generally required when applying to refinance your mortgage. You may or may not need them all, but for a fast and easy loan process, have these items available when you’re ready to complete your mortgage application.
- Social Security Number of all borrowers: Mortgage Lenders use your Social Security Number to access your credit record which contains information about your income, debts, and credit payment history.
- Current mailing address and number of years you’ve lived at this address: Current mailing address and number of years you’ve lived at this address: This information will be compared against your credit record to determine if your rent or mortgage payments have been made on time each month.
- Purpose of mortgage refinance: Lenders use this information to help set the rate and APR of your loan.
- Type of loan you want (Fixed-Rate Mortgage, Adjustable Rate Mortgage (ARM), etc.): Lenders need a clear picture of your current mortgage situation to help them determine the specifics of the refinance loan they will offer you.
- Original mortgage balance and interest rate, estimated current value and outstanding balance on first mortgage for this home: Original mortgage balance and interest rate, estimated current value of the property and outstanding balance on first mortgage for this home: Lenders need a clear picture of your current mortgage situation to help them determine the specifics of the refinance loan they will offer you.
- Second and third mortgage information (if applicable): The payments on your second and third mortgages help lenders understand your total debt situation.
- Employment information: Lenders normally like to see that you have been with the same employer for a few years, or at least in the same line of work, to demonstrate career stability.
- Total monthly income and debt payments: Your income and debt payments illustrate your debt-to-income ratio, which is the amount of money you owe each month compared to the amount of money you make. This ratio helps lenders understand your total financial situation.
- Total liquid assets: Lenders are interested in the amount and value of any assets you may have to help them judge your ability to make mortgage payments from available cash.
Once you’ve begun the Refinance process, your finance consultant will tell which documents you’ll need to get approved. They’ll vary depending on where you live and which mortgage program you’ve selected. But keep in mind — the more information you have ready before you apply, the faster you’ll get approved and close your refinance loan.
Even if you don’t have all of this information available right now, you can still begin the Refinance process. Just ask your finance consultant to save your place and you can pick up exactly where you left off.