What Information Do I Need to Refinance My Property?
October 22, 2020
You may wish to refinance your mortgage for many reasons, including obtaining better rates of interest, switching from an adjustable rate mortgage to a fixed rate mortgage and receiving cash out from your equity. Refinancing is nearly identical to obtaining a first mortgage when it comes to procedures and documentation. Preparing information beforehand can help to hasten the application and approval process.
Income Verification
Lenders need to confirm you have the monetary means to repay your debts. Most lenders require pay stubs for the past 30 to 60 days and W-2 forms to establish proof. If you are self-employed, income tax statements and other documentation relating to the money you make through your business may also be required.
Credit
When you submit the program, the lender will pull credit reports to receive your credit score and find out about your financial habits. Prior to applying, obtain your own copies of credit reports and clean up any suspicious things by paying past due reports or disputing things with the credit bureaus. Lenders may ask for documentation of any action taken regarding outstanding items, such as debts or judgments, on your own credit report.
Homeowners Insurance
Maintaining homeowners insurance also shows your fiscal obligation. Lenders often require a copy of your present policy announcement page, which lists the types and amounts of coverages that protect your home.
Asset Verification
Prepare copies of invoices from savings and checking account, 401k statements and accounts for investments such as stocks or mutual funds to provide evidence of any resources you own other than income from employment.
Liability Verification
Gather current account statements from all of outstanding loans, such as those for mortgages, home equity loans and lines of credit, cars, private and education. You’ll also need statements for scheduled alimony and child support payments, credit card accounts along with any other outstanding debts.
Miscellaneous Documentation
The lender may require documentation regarding the property, such as copies of any present title insurance, the recorded deed, recent assessments, property tax statements along with a legal description of their house. Lenders sometimes waive the requirement to get a new evaluation if one has been conducted.