Did you know that you do not have to keep your mortgage loan for the entire time you own your home? You can switch the loan to a new lender whenever you wish, and this is done through refinancing. Refinancing a home loan does not eliminate having a mortgage on your house, but it can provide benefits. If you are interested in doing this, here are the steps you must take to accomplish this goal.
Step 1: Find Out the Facts on Your Current Loan
Before you start the refinancing process, it might be helpful to know several facts about your existing loan. Here are the main three things you should find out:
- The payoff amount for the loan – The payoff amount refers to your current principal balance you owe on the loan, including interest, to pay it off in full.
- The interest rate – Knowing the interest rate is essential so that you can compare it to the going rates at this time.
- The number of months left on your loan – It is also good to know how much time you have left on your loan so that you can get a loan that is shorter than this amount of time.
The mortgage lender you talk to will ask about these things, which is why you should know them. You can move to the next step after you know these things.
Step 2: Contact a Lender
If you want to learn more about refinancing your loan, you will need to contact a mortgage lender. The lender may ask you to do several things, including the following:
- Fill out a loan application
- Consent to a credit and employment check
- Agree to an appraisal
Lenders need these things to evaluate loan applications, and your lender will process the application as soon as they receive it. After processing it, they will give you an answer to your request. If you do not meet the standards, they may reject your request. They will likely approve your application if you meet the standards and requirements.
Step 3: Follow Through with the Remaining Steps
If you get approved through the bank, they will order an appraisal for your home. After verifying the amount, they will begin working through the loan refinancing process. You should expect this to take a few weeks or so.
Are you interested in finding out how much money you can save by refinancing? If so, call a mortgage refinancing consultant today.