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Breaking Down the Refi Process

Refinancing is a great tool to lower your rate or payment, or tap in to the equity in your home. While similar to a purchase loan, there are a few differences in the process.

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Whether we worked with you on your initial application or you’re a first-time APM customer, know that we’re always here to help you. Click to find a loan advisor in your area today to get the ball rolling and discuss the advantages of refinancing in the current environment.

Determine Your Objectives

This is a question our trusted loan advisors are sure to ask you, so it always helps to think about it ahead of time. Why, exactly, do you want to refinance? People refinance for a number of reasons, including a lower rate, different payoff timeline, revised monthly payment, debt consolidation, or to cash out equity. Your motivation for refinancing can help your loan advisor obtain the most favorable terms for your unique financial situation.

Lock Your Rate

This can actually be done at any point during the refinance process. Some people prefer to lock their rate early, while others want to wait until their loan is closer to closing to see if they can shave an extra fraction of a point off. This is a completely personal choice that we’re happy to discuss with you. It’s also important to note that interest rates will range based on your credit score. If your score has dropped since you first obtained your mortgage, that may impact your refinance options.

Gather Your Documents

This step is easy. You’ve already done it before! Lenders will need to verify your income through W-2 forms and federal tax returns. They’ll also need to see your bank statements, homeowner’s insurance policy and a recent mortgage statement. Your debt-to-income ratio is still a consideration during a refi, so they’ll need a list of all your debts, including student loans, car loans, personal loans, credit card debt, etc.

Evaluate Your Loan Estimate

You should receive your new loan estimate within three days of completing your refinance application. You’ll want to look closely at this document to ensure all the terms are accurate and that you understand any fees or additional costs involved in the refinance.

Sit Tight

You’re no stranger to this step, either. Once you’ve done all your homework, settled on your terms and turned in your documents, it’s time to sit back and let the underwriters do their jobs. Some lenders may require an official appraisal before moving onto the underwriting step, but that’s not always the case. The underwriter will review your ability for repayment of the new mortgage.

Sign on the Dotted Line

Once underwriting is complete and your loan is approved, you’re just a few signatures away from closing your refinance! Simply sign the final documents, pay any outstanding fees and costs and a notary will make it official!

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