Be prepared to show the lender the most recent appraisal and survey of your home in case they ask. One other document to have on hand is also the most recent mortgage statement that shows the balance and monthly payments of any loans on your home.
Have you Been Thinking about Applying for a Home Mortgage Refinance Loan?
Perhaps you are in an adjustable rate mortgage, looking to consolidate debt, or even just lower your rate to a lower, fixed monthly payment. No matter what goal you are seeking to obtain at closing, one thing that you should stay focused on is how to save time and money when applying for a refinance of your home. However, all too often, many homeowners make the common mistake of not being fully prepared.
Being Prepared - What Does That Mean?
When applying for a refinance loan, you will want to be able to lock in your interest rate as quickly as possible when you see a low rate you want. Unfortunately, many homeowners lack the organization of the required documents and end up fumbling for them when they see a low rate, only to miss their chance to lock it in before the market changes, and even delay the closing of their loan, which costs even more time, money, and heartache. Here is how to avoid losing your precious time and money:
Gather Your Employment and Income Information
Always have one month of your and your spouse's pay stubs on hand, and if you are self-employed, you will need to have your tax returns for the past two years. You should also have your W-2's from your employers for the past two years. If you haven't been working at the same place of employment for at least two years consistently, have your work history and employer contact information along with payment history available as well. This will allow you and the lender to calculate a monthly average of income quickly and accurately.
Obtain Most Recent Bank Statements and Other Asset Statements
Typically, most homeowners will only need to show two months worth of statements from your bank accounts, IRA's, 401k, and any other investment accounts when applying for your home mortgage refinance. Documenting assets is a vital part of loan applications that can also position you to get the lowest rate possible. Your lender will typically ask for the last three months of these statements to evaluate.
Get Your Homeowner Documents Organized
In many cases, your lender will ask for the title insurance and homeowner's insurance policy and may even inquire about the property taxes you pay on the home. In some instances, they may also ask to see the note to your home if you have an adjustable rate mortgage or prepayment clause. Also, be prepared to show the lender the most recent appraisal and survey of your home in case they ask. One other important document to have on hand is the most recent mortgage statement that shows the balance and monthly payments of any and all loans on your home.
You've Got Everything Together, Now What?
Good! Now that you've got all the necessary paperwork together, you're going to find that when you're applying for your home mortgage refinance, you're going to feel very confident and in control. You'll notice that nearly every possible question on the loan application will be easily answered, because you are prepared with the necessary information, and your lender will be happy too! So get started and apply for your loan today, knowing that you just saved yourself a great deal of headache, time, and especially money by simply getting organized!
About the Author:
An author on refinancing. For additional articles and an extensive resource for everything about mortgage refinance loans and home mortgage refinance loans, please visit us for more info. Article Source: 1st Rate Articles - http://1stRateArticles.com
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