Close Your Refi Fast, Pay Less
By: Freeman Liz
July 26, 2010
Today, if you're well-qualified, it's hard NOT to get a low mortgage refinance rate quote. Current mortgage rates are just that good. However, some of that "good" may be offset by the hordes storming the gates of mortgage lenders, creating a processing and underwriting logjam. That affects you a couple of ways. First. lenders that get overwhelmed by business are likely to put on the brakes by increasing rates until they get breathing room. Second, it takes longer to close, which means locking your rate for a longer time, or paying to re-lock or extend that rate. The fact that most lenders give home purchases priority over refinances can worsen this affect.
Your quest to save money does not end at shopping for a mortgage. You need to close as fast as you can. This can be effected by doing the following:
1. Choose a loan professional who is very responsive to you, returning phone calls and providing a Good Faith Estimate quickly.
2. Be proactive with your mortgage officer. Call to make sure that faxes and loan packages have been received. Check frequently to make sure that no one is waiting for anything from you.
3. Get your documentation in as soon as you can. For those who are wage earners: you'll need a couple of pay stubs and your most recent statement from all of your accounts (all pages, even the blank one at the end). Self-employed folks and semi self-employed (sales people on commission, for example) will need the last couple of years' tax returns and probably a year-to-date income statement. you might also need to furnish a copy of your business license or a letter from your accountant about your business. Divorced folks should plan on providing a copy of the decree to verify any payments they make or receive from the ex-spouse. If you're refinancing a home with a septic tank, you may need proof that it has been pumped and inspected within the last five years.
4. Make yourself available to let the appraiser in the house as soon as possible.
Hit the ground running when you apply for a mortgage refinance and lock your interest rate. You'll save money and be less stressed, too.
