Refinancing is one of the most rewarding financial decisions a homeowner can make. But, how to refinance a home can be a daunting subject.
A knowledgeable professional can give the proper guidance with a brief understanding of your scenario in less than 5 minutes. And yet, people hesitate to refinance their homes because they find the paperwork and math to be scary. Creating an action plan to meet your refinance goals will help you avoid pitfalls and expedite your loan application process.
Follow these four simple tips to help prepare for a refinance:
1. Obtain a mortgage statement
A mortgage expert will need to see the current terms of your loan. Current terms will help your mortgage specialist identify if an opportunity to improve your loan exists.
2. Know how long you plan to stay in your home
A key component of a refinance making sense is the length of time you plan to stay in the home. You are more likely to benefit financially the longer you stay in the home. The Agave team can help you assess your scenario and determine the pros and cons of refinancing.
3. Know your personal finances
As you prepare your financial documents, review them holistically and develop a sense of your financial health. Identify opportunities to improve your financial situation and tell your mortgage specialist. Your credit, income, and property value will help your mortgage professional guide you to the right loan for your needs. Share your current financial position with your loan officer so they can craft a refinance that achieves your goals.
4. Lift any credit freezes and gather supporting documents
Many of the issues borrowers have with the mortgage process is the amount of paperwork required. Lenders need a robust view of your recent financial situation. It’s common for underwriters to ask for up to two years of your most recent financial documents. This could include your W2s, paystubs, and mortgage statements.
Store these records in a single location on your computer or in paper. Keep track of the documents you have in a spreadsheet or a checklist. Experienced mortgage specialists can help streamline the paperwork processing and help you identify the necessary loan documents.
Start a refinance on your home today
Have you already crunched the numbers, know your refinance goals and have all your financial documents in order? Maybe you just have questions and want to learn more about the loan process… now that you know how to refinance a home, get a jump start on the application. A mortgage expert from the Agave Home Loans team will help guide you through the refi journey.
Marshall spent seven years in hospitality and the restaurant industry prior to beginning a career in real estate and lending. After obtaining a finance degree with an emphasis in investments from Northern Arizona University, he began working at Quicken Loans. He spent seven years there as a banker and then Senior Director prior to co-founding Agave Home Loans. (NMLS ID: #1107208)