Once you have decided to refinance your home, we will gather the necessary documentation for your new loan. The majority of the time, since we are creating a totally new mortgage for you, we will need much of the same documentation as you had to provide for the purchase of the home. You will be given a short checklist of these items to provide. It will normally include recent paycheck stubs, W2s, and bank statements. If necessary, an appraisal of your property will also be ordered and an appraiser will contact you to schedule an appointment to view your home. A new title search will also be ordered to ensure that there are no new liens or clouds against the title of your home, and payoffs of your current mortgage(s) will be ordered.
Once all of that documentation has been received, one of my mortgage loan processors will call you and go over "final figures". Since the original Good Faith Estimate that I provide to you at the beginning of our process are initial "guesstimates" of such things as your mortgage loan payoff amount, insurance and tax impounds, etc., my mortgage loan processor will have much more accurate figures to discuss and go over with you. If you wish to adjust your loan amount at all, you can do so at this time. She/He will also schedule your closing at the title company with you and discuss if you will need to bring any additional documentation with you to the closing.
Your new loan is then submitted for the final underwriting approval, documents drawn and sent to the title company for your signatures. If this is your primary residence, after you sign you will have a 3 day right of rescission. This means that you have 3 days to change your mind and cancel the new loan transaction before the loan funds are disbursed and the new loan goes into effect. On the fourth day after you sign, the new loan is funded, documents recorded at the county recorder's office and all loan funds are disbursed accordingly. For instance, if you sign on Monday, your right of rescission lasts Tuesday, Wednesday, and Thursday, and the new loan funds and goes into effect on Friday. If you are due any "cash out", you will receive it from the title company on Friday. If you are refinancing a second home or rental property, there is no rescission and your new loan funds immediately.
Please be aware, that often times it takes the loan servicer (who you make your monthly mortgage payments to), more than 30 days to set up your loan in their computer systems and get your payment coupon books. If this happens, we usually include temporary payment coupons to use. You should receive them within the copies of the loan documents you sign at the title company at time of closing. These temporary payment coupons will have all of the information necessary to make your payment until the mortgage company sends you actual payment coupons or statements.
