First we want to determine if it even makes sense to refinance.
We talk with you about pertinent details such as how long you think you will be staying in your current home and what your goals and objects are in refinancing. For example, are you looking to get a lower payment for cash flow purposes or are you trying to get the loan paid off earlier.
Some companies just try to fit you in a loan that is convenient for them — they don’t even bother to show you options. There are always options and depending on your situation, a good loan consultant will show you a side by side comparison of your existing loan and several other options based on our discussion.
Should you pay points or maybe you would be better off doing a loan with No Closing Costs? You need to consider what your payback period will be.
We will fully explain your options with a specialized piece of software called Mortgage Coach. We do this in the form of an audio clip walking you through the whole thing in plain English.
PUTTING THE PAPERWORK TOGETHER
Once we have determined that it makes sense and you are ready to move forward, we will get an application from you. We can either do this through a secure online application or over the phone.
We will then confirm that your credit is acceptable and that you are approved through an automated underwriting system.
Next we prepare all of the application paperwork that must be signed and the items you will need to gather for us — things like your paystubs, W-2’s, bank statements etc. All this can be emailed to you and you can either scan and email back or fax.
We will also order the appraisal and title at this time.
SEND THE LOAN IN FOR FINAL APPROVAL
Once we receive all of your signed paperwork and updated documents, we will package all this up and send it to our underwriter for review. This review is just a double check that all of the information that you supplied in the loan application is supported by the proper documentation that the lender will require. I refer to it as a validation process. Since we are intimately familiar with the guidelines ourselves, we have tried to anticipate everything the underwriter will require.
When we submit your file at this point it is more about dotting I’s and crossing T’s to make sure all of the proper documentation is in the file for the lender. The underwriter will also review your appraisal when we receive it and review the title report to make sure that there are no liens against the house that you are not aware of.
Once the underwriter reviews the file, they issue what is called a conditional approval. Oftentimes there are a couple things that we may have missed or that you are waiting on that still need to be provided to issue the final approval.
FINALIZING THE DEAL AND CLOSING
We offer a 10 day checkup that is unique in the industry. After underwriting has issued the conditional approval, we prepare a Closing Preparation letter for you where we confirm several items to insure we are on the same page. These items include loan amount, interest rate, how much approximately money you will need the day of closing, how you will hold title, among other things.
This way we have time to correct any errors and you are comfortable that there will be no surprises when you go to closing.
During this time we also work with the lender to get your final paperwork over to the closing attorney who will handle your closing. They then prepare the “Final” numbers that are distributed in the form of what’s commonly referred to as your Settlement Statement.
This is the day you have been working towards. Since we have done all the heavy lifting well ahead of this day, this should be as simple as walking in and signing the documents and giving the attorney your check (if applicable).
The closing attorney will walk you through all of the standard documents that you will be asked to sign but since we will have already gone over the final numbers in detail ahead of time, it should be sign and go!