What to Expect When Refinancing During a Pandemic
Mortgage refinancing recently soared to unprecedented levels due to the COVID-19 pandemic and the Fed’s emergency rate cuts. In fact, according to Ellie Mae’s origination tracker, mortgage refinances accounted for 65 percent of all loans closed in April, up from 55 percent in March and just 51 percent in February when the coronavirus began to spread in earnest.
Between the sheer volume of applications due to lower rates and limitations placed on the industry due to health safety, it should come as no surprise the process of refinancing your home may have changed some since you last closed on a loan. With that in mind, here is an overview of what to expect from a home refinance during a pandemic.
On top of an avalanche of refinance applications, the coronavirus pandemic dramatically changed the way everyone in the mortgage industry works. Loan officers started working from home, and title company’s dramatically changed processes for closing day.
COVID-19 also threw another curveball into the mortgage process by impacting employment and income verification. With so many employees working from home for various companies, it is taking longer for mortgage lenders to verify a borrower’s employment and income.
Tips for Borrowers
While most of these delays are unavoidable, there are some things that borrowers can do to keep the process moving along as smoothly as possible.
1) Get your paperwork in order: A crucial financial document (i.e. pay stubs, bank statements, tax returns, etc.) can delay your refinance so make sure you provide everything needed up front. At ALCOVA, we make this easy with our convenient online application that securely syncs your financial info through your phone, tablet or computer.
2) Protect your credit score: Make sure you don’t miss any payments or take on new debt that could lower your credit score.
During this refinance boom, ALCOVA is dedicated to help every borrower take advantage of today’s low rates. Wondering if refinancing is good option for you to pursue? Contact one of our Loan Officers today to learn more!
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