Overview of the Process

• The first step is to submt an application with a mortgage lender. The lender collects all the proper documentation for you to sign. The lender then orders an appraisal and title search. Once the title search and appraisal are completed, the lender sends the collected paperwork to be sent to an underwriter. The underwriter makes a decision as to whether the loan will be closed. Once the underwriter has signed off on the file, the loan is sent to a closing attorney or title company, depending on the laws of the state in which the property is located. The attorney or title company then closes the loan, and the process is completed.
  
  

What do I need to bring to the table?

• You will have to supply paperwork that includes, but may not be limited to: two years tax returns, two months of bank statements (all pages) and two months of pay stubs. You will be required to show a picture ID, and a credit report will be completed based upon your Social Security number and birth date. You will fill out an application that asks for your salary, work history and bank account history. You will also sign a stack of paperwork at the application and will sign some of that paperwork for a second and final time at the closing.
  
  

What's next?

• A majority of the process is completed by your lender, with the exception of the appraisal, title search, and the loan closing itself. After you finish the application part of the process, you are in "hurry up and wait" mode. The process from application to the closing table usually takes four to six weeks, depending on the amount of loans that are also in the lender's pipeline. The key is to make sure that the loan closes before you lose your rate, your rate lock will vary from 30 to 60 days, or longer, depending on your agreement with your lender.
  
  

Anything I can do to speed up the process?

• When you are asked to complete a part of the process, the faster you do your part, the faster you can get to the closing table. Many times lenders are waiting on paperwork from their clients, which slows down the process. Another time killer is waiting on an appraisal. If you have to let an appraiser into your house, the longer you delay the appointment -- the longer the appraisal is delayed. Make sure to make the appointment with the appraiser as soon as possible once you two are in contact. This ensures that the appraiser can get their information back to the lender as soon as possible. Also, maintain steady contact with your lender. The more involved in the process you are, the more likely you are to close sooner. Communication is key.
  
  

Mortgage Fun Facts

• If you can afford to continue making the higher payments you paid before the refinanace, you will save thousands in the long run. Making one full extra mortgage payment a year on a 30-year fixed mortgage, will cut the length of the mortgage by almost seven years.