A mortgage refinance is the process by which your current mortgage is paid off by a new loan. The federal government has expanded the underwriting guidelines of several mortgage programs to help upside down home owner’s take advantage of the recent historically low interest rate environment.
Step 1: Am I eligible?: FHA, Freddie Mac, & Fannie Mae all have refinance programs available which enable home owners to refinance their current mortgage without an appraisal.
Step 2: How do I know if I’m eligible?: If you have a FHA insured mortgage it will say so on your mortgage statement or in the copies the attorney gave you from your last closing. To see if you have a Fannie Mae or Freddie Mac loan you can input your information into the websites listed below.
Step 3: Prepare your paperwork: All 3 loans require some basic documentation and signed disclosures that will need to be submitted to underwriting by your Mortgage Buddy. Make sure to follow the checklist exactly to save time during the process.
Tips to save time: The following is a list of items to pay close attention to, to make sure your refinance moves through processing and underwriting as quickly as possible.
- Do not apply for any credit cards or loans of any type until your refinance is completed
- Do not make any non-direct deposits into your bank account or transfer any money between accounts without first reviewing it with your Mortgage Buddy.
- Inform your Mortgage Buddy of any change or anticipated change of employment status that would occur during the refinance process.
- Provide complete statements: Whenever providing bank statements or asset statements such as a 401k or IRA statement they must have the following. A.- Full name B.- Address C.-Full account number (no Xs or partial account numbers will be accepted) D.-Bank or Institution Name E.- All pages, if it says page 1 of 4 the underwriters will need all 4 pages. “screen shots” or “print outs” are not acceptable unless they are signed & stamped by the bank
Ask Questions: The Mortgage Buddy is here to help you feel comfortable with every step of the process. If you have any questions about the process or something you read online or in the newspaper about refinancing please ask me. Every situation is unique.
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