Throughout your homebuying journey, your mortgage needs may change over time, and a mortgage refinance can offer the benefits of lowering your monthly payment, paying off your loan sooner, or cash-out options for debt consolidation or home improvements.*
As a homeowner, you’ve gone through the mortgage process at least once, but that doesn’t always prepare you for what to expect should you decide to refinance your home loan. Our Home Loan Experts are here to be your personal guide, but for you to be even more prepared, we’re pulling back the curtain to share how a refinance loan works.
Plus, as a member of the AmeriHome family, you’re eligible for a free mortgage checkup and AmeriHome Rewards. See how you can start saving today with a Refinance Loan.*
Refinance Process:
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Your Mortgage Lender
The first step is to work with an experienced Home Loan Expert to evaluate your current home loan through a mortgage checkup and to determine your refinancing needs based on your financial goals.
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Application
The process will be very similar to when you first purchased your home. You’ll need to fill out an application and provide documentation that will be used to assess your credit history, assets, and annual income to evaluate your financial stability.
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Lock-In Your Interest Rate
After your initial loan approval, it’s time to lock in your rate to ensure you get the best rate possible. Your lock can last anywhere between 45 to 60 days.
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On To Processing And Underwriting
The loan processing team will help to collect the additional documentation needed to process your loan. When all of your documentation has been submitted, it’s time for the underwriting team to get busy verifying all of your information for accuracy. The value of your property will also be determined through an appraisal since this will affect the amount of equity you have in your home for a cash-out refinance or to lower your monthly payment.
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Your Home Appraisal
Based on your loan type, if an appraisal is needed for your property, your lender will order the appraisal for you. Before an appraiser visits your home, you want to be sure everything is at its best, including having great curb appeal and completing any needed repairs. You can also show an increase in value by providing a list of home improvements and upgrades to your property. If your appraisal comes back at or above your needed refinance loan amount, you have completed the underwriting process. If it comes back as less than desired, you can work with your lender to adjust your refinance options.
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Closing Day
You’re almost done! Be on the lookout for a Closing Disclosure document from your lender to arrive a couple of days before closing. This will give you all of the financial details that will be addressed when you are at closing with the notary and title company. Any closing costs that are due will be paid now unless they have been rolled into your new loan.
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Your Loan Has Funded
It’s time to celebrate! A mortgage refinance is an excellent option to help you stay on the right path to meet your financial goals and provides fiscal flexibility during your homeownership journey.
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If you’re looking for more ways to save this year. A Refinance can help you to:
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Lower Your Interest Rate
Reduce your monthly mortgage payment for real savings that add up over time.*
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Pay Off Your Loan Sooner
Switch to shorter loan terms to save on interest.*
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Lower Your Monthly Payment
Refinance with longer terms, so more money stays in your wallet.*
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Consolidate Debt
Cash-out to reduce credit card debt with high interest rates.
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Pay For Larger Expenses
Invest in your home with updates that will yield a higher return should you decide to sell in the future.
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If you are interested in learning more about how a Refinance loan can benefit you, just give us a call at 877.715.9908 or get your instant rate quote here.
We’ll work at your pace—we deliver loans at the speed of you!
*By refinancing, your total finance charge could be higher over the life of the loan.
