What Documents Do I Need Before Refinancing My Mortgage
So you’re interested in saving money by refinancing your home mortgage. Well before you seek financial services always keep in mind certain paperwork is necessary for your approval. Many homeowners attempt to prepare loan application paper work themselves while others find it more convenient to turn to mortgage professionals to complete the refinance procedure.
When considering refinancing your home mortgage the fine details of the loan application are critical. It’s also important to bring the necessary documents to ensure your loan application is approved or modified to better your circumstances. That’s why you came right?
The following items are recommended to speed up the loan process in order to complete your mortgage application for approval.
- You will need proof of income to verify your income as the borrower. Typically, you must show original pay stubs for the previous months.
- Updated copies of your W2 forms and most recent tax return are required for each loan applicant. This helps the lender verify past income history and service terms.
- You should provide a copy of homeowners insurance. Guidelines require homeowners insurance so that the lender can protect their investment.
- The homeowners insurance must be obtained before closing on your loan. Generally, coverage must at least equal the loan balance i.e. the value of the home. The lender will verify that you have current and sufficient coverage on your home.
- Make sure you provide copies of asset information. Asset information includes accounts holding money for closing costs, statements for savings and investments such as mutual funds or equity stocks.
- Finally, you must provide a copy of title insurance. Title insurance helps protect lenders from any potential liens or title disputes on the property. The title insurance is always required to close on your home.
- Additionally, you might also purchase title insurance that offers protection for you as the homeowner. This type of insurance can help your mortgage lender verify the taxes, names on the title and legal description of the property.
- Lastly, Make sure you have access to funds for closing fee associated with refinancing. Typically, it runs about two percent of the purchase price for prepaid interest to cover the time between the date you close your loan and the date you make your first mortgage payment
This will help give you a jump-start on your mortgage refinance process, your mortgage professional should also tell you which documents are needed to get approved. It’s best to gather as much information as you can and organize before you apply. It all comes down to less time that it will take for you to get approved, and close your loan.
