Once you have decided to refinance your home, Jason and his team will gather the necessary documentation for your new loan. Since they are creating a totally new mortgage for you, they typically need much of the same documentation as you provided for the initial home purchase. You will be given a short checklist of these items, which normally includes recent paycheck stubs, W2s, and bank statements. If necessary, an appraisal of your property will be ordered, and an appraiser will contact you to schedule an appointment to view your home. A new title search also will 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 the documentation is received, one of Jason’s loan processors will call you to review the final figures. Since the original Good Faith Estimate provided at the beginning the process contains estimates of such things as your mortgage loan payoff amount, insurance and tax impounds, etc., the loan processor will have much more accurate figures to review with you. If you wish to adjust your loan amount, you can do so at this time. The processor also will schedule your closing at the title company, as well as provide you with instructions to bring any additional documentation to the closing.

Your new loan is then submitted for the final underwriting approval; thereafter, the documents are drawn and sent to the title company for your signature(s). If you are refinancing your primary residence, 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 takes effect. On the fourth day after you sign, the new loan is funded, the documents are 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 it usually takes the loan servicer (to whom you make your monthly mortgage payments), more than 30 days to set up your loan in their computer systems and mail your new payment or coupon books. If this happens, we usually include temporary payment coupons for your use. You should receive them along with copies of the loan documents you sign at the title company at the time of closing. These temporary payment coupons will have all of the information necessary to make your payment until the mortgage company sends your actual payment coupons or statements.

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