Get A Smooth Refinance in 5 Easy Steps

From locking in a lower rate to lowering your monthly payments to shortening your loan term, there are many reasons to consider refinancing your mortgage.

Now couldn’t be a better time to refinance. With rates at historic lows, the number of homeowners that could benefit from refinancing has increased dramatically. In fact, 75% of homeowners, or around 19.3 million people could benefit from refinancing. That’s the largest number of potential refinance candidates ever on record!

Whatever your reason is for refinancing your mortgage, we know it can be an overwhelming process. Here are 5 steps to follow to ensure a smooth refinance!

Is Now the Right Time?

While there are plenty of benefits to refinancing, there are some points to consider before determining if refinancing is right for you. If your home has increased in value, or if interest rates are low, it’s probably an appropriate time to consider refinancing your mortgage. If you are into crunching some simple numbers, check out our online refinance calculator as a resource.

Talk to A Loan Officer

If you are still on the fence about refinancing your home loan, talk to a mortgage lender to determine your refinancing options. Your Loan Officer can evaluate your situation and help you weigh the pros and cons of refinancing. You can contact one of our ALCOVA home loan experts in your area to get started!

Pull Together Your Documentation

Just like your original mortgage, refinancing requires a similar amount of paperwork that you assembled earlier when you bought your house. Update your files and obtain the latest copies of your pay stubs, tax returns, credit report, statement of outstanding debts and statements of your assets. Also, stay away from applying for new credit cards or making any major purchases.

Submit Your Application

If you have determined to move forward with refinancing your home loan, you will submit your application, and your lender will then review your credit, verify your income and schedule a home appraisal.

Time to Close!

Once your application for refinance has been given the green light, you’re ready to set a closing. You will receive the official terms of your new loan and be able to finalize the deal.

With rates remaining relatively low, refinancing continues to be a smart option for many homeowners. Contact one of our home loan experts to see how we can help you make a smart refinancing decision.