When you begin to consider refinancing, you must determine what benefits you might reap from doing so. Below are questions you might ask. Time would be well spent with a Britton & Koontz Mortgage Loan Officer to review several options and present some options to help you determine whether your timing is right for refinancing.
- Why am I considering refinancing?
1. Lower interest rate?
2. Equity in our home that we need to use.
- What is the length of time that we plan to stay in our home?
- What are the steps involved? What are the costs involved?
- Is it the right time to refinance?
Refinancing process from Application to Closing:
The steps of a refinance from the application to the closing are somewhat the same as for purchasing a home. However, there is no realtor involved. To determine if you are a candidate for refinancing your current home, gathering the items mentioned in the Tips on Applying for a Loan, make an appointment with a Mortgage Loan Officer and let him/her advise you. If you and your Loan Officer determine that refinancing is the appropriate financial move for you, the remaining steps will include:
- Choose the loan program (type of loan) and lock in the interest rate.
- The lender will order the appraisal and title commitment.
- The buyer purchases homeowners’ insurance.
- Upon receiving all of the verified documentation, the lender submits the documents for underwriting and final approval.
- Loan is scheduled to close.