making the decision that you want to refinance, there are a few things
to do prior to moving on your decision. Take a look at you loan-to-value
ratio and make sure it meets the minimum requirements your lender
requires. If you do not meet this 80% or less LTV, you may qualify for
some specialty government programs that can step in and help you to refinance.Â Â Whichever route you end up going, start gathering the following documents:
Proof of income/employment: Proof
of income/employment proves to the lender that you can handle new
mortgage payments. Pay stubs from the last 30-60 days and a W-2 normally
suffice to fill this requirement. In some cases, you may need your tax
returns and if you are self-employed, you may be asked to complete an
Asset information: What
assets do you have readily available to you? Bring with you
documentation of bank accounts, retirement accounts, and investment
Homeownerâ€™s insurance policy: Protection is the name of the game. Homeownerâ€™s insurance policy proof shows the lenders that your home is covered.
Title insurance: Your
title insurance provides a detailed description of the property you are
looking to get refinanced as well as verifies you are in fact the legal
owner of the property.
bring your appraisal and if you do not have one, get your home
appraised. Having the appraisal done ahead of time saves the process of
having the lender call for an appraisal which may take up to several
weeks to have completed. If you choose to get one ahead of time, be sure
it is 30-60 days old and no more. Timeliness is of the essence.
(double check your specific lender requirements to make sure you have everything)