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Refinancing Basics

Many of the steps of refinancing are the same as purchasing a home. But there are some differences. Let’s go over the steps.

In-House Lender

Homestead is an in-house lender. That’s a big advantage to you as the borrower because we do everything in-house, from taking your application to funding your mortgage.

Because we control everything, we can close much faster than most lenders. For refinances, 30-day closes are normal.

Application

Just like when you purchased your home, you’ll fill out an application. But, at Homestead, we make it easy. When we can, we fill out as much of the application as possible. That saves you time and stress.

Credit Pull

Next, we’ll pull the credit for every borrower. That will show us what type of loans you can qualify for and what your interest rate could be.

Documentation

You’ll need to supply documentation. That includes

  • 30 days pay stubs
  • 2 years W2s or 1099s
  • 2 years of federal tax returns
  • 2 months bank statements
  • Mortgage statement
  • Home insurance policy
  • Driver’s license

You’re welcome to bring your documents into our office, or we can send you a link, and you can upload everything.

Type of Loan

You might already know what type of loan you want. If not, at this point, we’ll be able to discuss your options from Conventional, VA, FHA, USDA to Jumbo loans.

Loan Term & Interest

Besides the type of loan, you’ll choose a fixed or adjustable rate. When rates are low, you’ll want a fixed rate. We offer 30, 20, 15, and 10-year mortgages.

Private Mortgage Insurance

If your current mortgage has Private Mortgage Insurance (PMI), as long as you have enough equity – we’ll work to get you a loan with no PMI. That will save you $100 or more each month.

Collateral

Just like with your current mortgage, your property will secure the loan. If you don’t make your payments, the bank can take the property back.

Loan Estimate

With all the information you’ve given us, we’ll give you a loan estimate that will include your new payment and any closing costs.

Appraisal

Next, we’ll order an appraisal. Sometimes an appraiser doesn’t have to come out because an automated system can verify the home’s value.

Underwriting

Now your file is complete, and our processing department will send it to underwriting. If the underwriter has any questions, answer them right away so you can close quickly.

Closing

Once your loan is approved, we’ll work with you to schedule closing your loan. You can sign the documents in our office, at the title company, or we can schedule a remote notary to come to your home.

Why Homestead?

Homestead is a top lender of mortgage loans for refinancing. Your loan advisor can walk you through every step of the way to qualifying for a mortgage. Our rates are some of the lowest in the states we serve. Our loan advisors provide excellent service, as you can tell from our reviews. Plus, we close fast!

Refinancing home balanced on ball depiction