Items you will need
- Financial information
- Current mortgage information
There are many reasons for refinancing a mortgage. Some people do it in order to get a better interest rate, while others are trying to lower their monthly payment, get a different type of mortgage or draw out some built-up equity. Before you refinance, have a clear picture of how many years you plan to live in your current home. This information will help your lender recommend the best mortgage products for your refinancing.
Assemble your financial information so you have a clear picture of your finances to provide to the lender. Collect your W2s, bank statements, investment account statements and two months of pay stubs. Include a copy of your most recent mortgage statement as well.
Have a clear understanding of your current credit scores so you know the types of mortgage products you qualify for. Credit scores can be obtained for a small fee from one of the three major credit bureaus: Transunion, Experian and Equifax.
Interview prospective lenders to refinance your mortgage. You should be comfortable with your lender, who should act as a consultant. A good mortgage broker will assist you in choosing the right mortgage product without being pushy or overbearing. Once you've chosen a lender, he or she will pull your credit report and order an appraisal of your home. The lender will also verify your financial and employment information and make sure your property taxes are current.
Go through the closing process once the lender has verified all of your information. The closing process will pay off your existing mortgage and generate a new one through the refinancing process.
Speak with your lender about the fees you will incur through refinancing. These fees will often be very much the same as the fees you incurred when you first purchased the home, including origination fees, title search fees and appraisal fees.
Don't allow a lender to pull your credit report until you're sure that you will refinance through that lender.