How Long Does It Take To Refinance A Home?
What you can do to speed up your refinancing
Want to speed up the refinancing process? Here are some helpful tips to help you move quickly.
Determine your financial goals
Refinancing can help you achieve different financial goals. With that, it’s important to sit down and figure out exactly what you hope to achieve with refinancing.
Here are some reasons to refinance:
- Lower your monthly payment to reduce the burden on your budget.
- Lower your interest rate to help you save money throughout your loan.
- Access the equity you have built up in your home through cash refinancing.
Without understanding why you want a refinance, it can be difficult to move forward with confidence.
Prepare the paperwork
In order to speed up the process of applying for a new home loan, you can collect the documents you need in advance. Here are some of the large documents you will need:
- Two most recent W-2s
- Two most recent pay stubs
- Recent bank statement
With these ready-to-use documents, you will facilitate the process of applying for a home loan.
Check your credit score and report
A quick check of your credit score can help you determine whether or not you qualify for the best interest rates. If your credit score is relatively low, you may want to delay the refinancing process to establish your credit score.
Shop around for the best mortgage deal
The importance of shopping around for the best refinance rate out there cannot be understated. You could save thousands of dollars by looking for a lender who can offer you the best interest rate.
Beyond comparing mortgage lenders, you should also explore the refinance programs available. A few include conventional mortgage refinancing and FHA refinancing. Each can help you achieve different financial goals. With this, it is important to carefully compare your options.
Request loan estimates
Loan estimate can help you understand the expenses that will accompany a particular loan. If possible, get loan estimates from two or three of your major lenders.
With loan estimates in hand, take the time to review the costs of working with each lender. You can make the final decision about a lender when you have all this information. It is important that you compare apples to apples by type and length of loan when looking at loan estimates.
Make sure you qualify
Refinancing is a loan like any other. With this, you will have to prove your credentials to the lender to go ahead.
Take an honest look at your finances. If you have a bad credit rating or an unstable income, you may not be eligible for refinancing. But if you have a good credit rating and significant equity in your home, then refinancing might be right for you.