4 ways to speed up your refinancing
Mortgage refinancing makes sense in many situations. If interest rates are historically low and you’re struggling to pay your current mortgage payment, refinancing and getting a cheaper rate is a no-brainer.
Refinancing is also a good idea if you want to give up your variable rate mortgage and lock in a fixed rate. And if you divorce, you’ll need to refinance in order to get your ex-spouse’s name off the mortgage.
Whatever your reason for refinancing, you want the process to go as quickly as possible. Unfortunately, there are several factors that can slow down a refi, but if you know what to expect, you can help your lender facilitate a quick close.
here is four simple tips to speed up the mortgage refinancing process.
1. Gather your papers in advance
Refinancing a mortgage is basically the same process as getting the original home loan. Therefore, your mortgage lender will need your recent pay stubs, two-year tax returns, and information about bank accounts and other assets.
For a faster process, it helps to gather the necessary documents in advance and then pass that information along with your request. If the lender receives your application today, but it takes you a week or more to gather the additional documents, it will extend the refinance.
And if the lender starts scheduling more closings ahead of yours, you will experience further delays.
2. Be honest about your finances
If you are not sure if you qualify for refinancing, mention these concerns early on. Since banks offer a variety of mortgage products, the bank may have a refi program that is perfect for your unique situation.
Failure to mention potential issues, such as lack of funds for closing or perhaps a recent late payment on your credit report, may temporarily halt your refinancing, as your loan officer may have to start over. and find a more suitable mortgage product.
However, if you are upfront from the start, your loan officer can recommend the best refi option the first time around.
3. Don’t change your financial situation
The worst thing you can do is quit your job or take on new debt while refinancing your mortgage.
Changing jobs or getting a new car loan doesn’t have to be the kiss of death, but the mortgage lender will need to reassess your situation to make sure you’re still eligible for refi, which can take a few weeks.
4. Cooperate with the assessor
A mortgage lender will not complete a refi until there is an appraisal of the property. This determines the value of the property, and this is important because lenders will not lend more than the value of the home. An assessor will contact you to schedule a visit.
If the appraiser is having trouble reaching you, or if you can’t stick to their schedule, it can delay the closing of your new mortgage.
The assessment takes less than 30 minutes, so do your best to rearrange your schedule. The sooner your lender receives the appraiser’s report, the sooner the bank can schedule your closing.
Refinancing is a great way to get better mortgage terms, and it’s the only way to get an ex-spouse or other co-applicant out of the mortgage.
Typically, it takes between two weeks and 30 days to complete a refi. However, if the lender collects your documents as soon as possible and there are no surprises along the way, you will enjoy a quick and smooth closing.