Checklist: What You Need to Know to Speed Up Your Refinance Process
There are many reasons to refinance. Maybe you need a little extra cash to cover a remodel, some credit card debt or your child’s college tuition, or maybe you just want to save on your monthly mortgage payment.
Regardless of the reason, you’ll likely want your refi to go quickly so you can start reaping the benefits as soon as possible.
The key to making that happen? Some good old preparation and foresight. Just follow this handy checklist, and you can ease the refinance process before it even begins:
Figure out what type of refinance you need.
What are your reasons for refinancing? Are you looking to shorten the length of your loan or lower your monthly payment? Do you need a quick cash infusion to cover some upcoming expenses? From cash-outs and HELOCs to HARP refinances and ARMs, the choices for refinancing are endless. Do your research, and work with a trusted loan officer to determine which options are best for your unique financial goals.
Check out mortgage rates.
If you’re looking to lower your monthly payment (because honestly, who wouldn’t want that?), look into current mortgage rates to make sure it’s in your best financial interest first. You want today’s rate to be lower than what you’re currently paying on your existing mortgage loan—and the lower, the better.
Assess your finances.
A refi can certainly save you money in the long run, but keep in mind there will be some short-term costs you’ll need to pay up front. There are closing costs, application fees, title insurance and other line-items you will need to cover, so make sure you have the funds available to pay them before you start the process.
Get your paperwork together.
Just like with your first loan, you’ll need to provide a number of account statements and financial documents as you go about your application. Pulling these together now can save you time and frustration once the process begins. Specifically, you’ll want the last two pay stubs, the last two months of bank statements, copies of your most recent tax return and statements on any savings, 401Ks or investment accounts you might have.
File your application, and lock in your rate.
You’ll need to act fast if you don’t want mortgage rates going up, so once you’ve confirmed the loan type you need and gathered up your documentation, start the application process right away.
Other Tips for Improving Your Refi
If you’re looking to get a better rate or save more on your refinance, consider working to improve your credit before filing your application. The higher your score, the better rate you’ll likely qualify for (and the less in interest you’ll pay in the long run.)
You can also consider paying points up front. This allows you to prepay interest and lower your payment over the life of the loan. Just keep in mind that you will need this money on closing day, so make sure you have the savings in place to cover it.
Are you considering refinancing your mortgage loan? If so, get in touch with SnapFi today. We’ll help you determine the best product for your needs, and we’ll let you know what rates you’ll qualify for. Contact us now to get the process started.
Photo by Aaron Huber on Unsplash