Refinancing an existing mortgage can save you thousands of dollars! Refinancing follows much the same process as a loan used to purchase a home. You will complete a loan application either in person or online and submit it to your loan officer who will again submit your application to an automated underwriting system which will spell out the items needed to complete your loan approval. The lender will then order the necessary third party documentation needed including such items as a property appraisal, title and other third party services. Once the file has been documented per the terms of the approval, the loan will go into underwriting for a review. Once the loan is approved by the underwriter, closing papers will be delivered to your escrow agent and a closing date and time will be scheduled. At your closing, the escrow agent will follow the lender’s instructions and then returned the signed loan papers to the lender. With a refinance, there is a mandatory three-day waiting rescission period before the loan will fund.
When a lender receives a mortgage loan application, it’s the beginning of a process that has several steps