4 Steps You Can Take to Prepare for Refinancing Your Home

Refinancing is one of the most rewarding financial decisions a homeowner can make. A knowledgeable and experienced 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 and preparing your financial documents 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. It will help your mortgage specialist establish a fuller picture of your financial goals and identify an opportunity to improve your loan terms.

2. Know how long you plan to stay in your home

In most scenarios, the key component on whether a mortgage refinance will make sense is the amount 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 the right factors to achieve a tailored and accurate financial perspective on the benefits of refinancing.

3. Know your personal finances, set clear financial goals

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. Between your credit report, monthly income, estimated property value, long-term goals, and total assets, a quality mortgage professional can help guide you to the right loan for your needs. If money is tight and you have to service debt obligations, share this helpful context with your mortgage expert so they can craft a refinance scenario that puts you in the best financial position for success.

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, including:  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 your refinance today

Have you already crunched the numbers, know your refinance goals and have all your financial documents in order? Or, maybe you just have questions and want to learn more about the loan process…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 Gottlieb - Co-Owner and CEO
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)

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