Refinancing Checklist! Print This Out For an Easy Checklist to Follow
After making the decision that you want to refinance, there are a few things to do prior to moving on your decision. Take a look at you loan-to-value ratio and make sure it meets the minimum requirements your lender requires. If you do not meet this 80% or less LTV, you may qualify for some specialty government programs that can step in and help you to refinance. Whichever route you end up going, start gathering the following documents:
- Proof of income/employment: Proof of income/employment proves to the lender that you can handle new mortgage payments. Pay stubs from the last 30-60 days and a W-2 normally suffice to fill this requirement. In some cases, you may need your tax returns and if you are self-employed, you may be asked to complete an income audit.
- Asset information: What assets do you have readily available to you? Bring with you documentation of bank accounts, retirement accounts, and investment accounts.
- Homeowner’s insurance policy: Protection is the name of the game. Homeowner’s insurance policy proof shows the lenders that your home is covered.
- Title insurance: Your title insurance provides a detailed description of the property you are looking to get refinanced as well as verifies you are in fact the legal owner of the property.
- Appraisal: Finally, bring your appraisal and if you do not have one, get your home appraised. Having the appraisal done ahead of time saves the process of having the lender call for an appraisal which may take up to several weeks to have completed. If you choose to get one ahead of time, be sure it is 30-60 days old and no more. Timeliness is of the essence.