Work with your loan officer to evaluate your current financial standing, including credit score, debt-to-income ratio, and overall financial health, to determine if refinancing is a viable option.

Clearly define your refinancing objectives. Whether it’s lowering monthly payments, reducing the interest rate, or accessing cash equity, establishing goals will guide your decision-making. Your loan officer will prepare customized loan options to meet your primary refinancing objectives.

Your loan officer will review various loan products to find the best fit for your needs. They will present to you the options available so that you can compare interest rates, terms, and fees to make an informed decision.

Prepare essential documents such as income verification, tax returns, and property information. Having these ready will expedite the loan application process. Your loan officer will prepare a document checklist of items needed specific to your specific loan application.

Work with your loan officer to provide the necessary information and documentation to complete your loan application for underwriting. In this step, you will settle on the loan amount you qualify for and select the best loan rate and terms to achieve your goals.

Most often, a home appraisal will be required to assess its current value. Some refinances loan programs may also require inspections. These steps ensure the property meets loan requirements.

The underwriter reviews your financial information, supporting documentation, the property appraisal, and any other necessary third-party verification to determine if you meet the loan criteria. This step may involve additional documentation or clarification.

Once the underwriting process is complete, the underwriter will issue a loan approval, outlining the terms and conditions. Your loan officer will review these carefully with you to ensure you understand the loan you have been approved for, and assist you in gathering any additional items the underwriter may have requested to approve funding your loan.

Your escrow team and loan team will coordinate with you to schedule a closing date and sign the necessary paperwork. Be prepared to pay closing costs as applicable, and ensure all loan and title terms align with your expectations. If you are refinancing your primary residence, compliance regulations ensure that you are provided with 3 days after signing loan documents to review all details before your loan funds as a safety net or a cooling-off period. After you’ve signed the papers to refinance your home, you have a window of time (usually three business days) to change your mind and cancel the whole deal without any penalty.

After the closing, the lender disburses the funds. For a refinance, these funds may be used to pay off the existing loan, any applicable closing costs or other loan payoffs, and any remaining amount may be distributed according to your preferences. Keep track of the new loan terms and payment schedule.