Home owners consider refinancing their home for many reasons. But some find it difficult to know just how to refinance a mortgage. No matter what the reason is there are certain steps that remain constant.



Whether you want to save money with a lower interest rate, capitalize on equity, lower monthly payments or just obtain a different type of loan there are several things you need to do to refinance your property.

The first step in refinancing a mortgage is to gather all of your financial information. You will want information regarding your present mortgage as well as any assessments of the property. Take all this information with you when you meet with the new lending facility. Be sure to bring your bank statements, W2s, and most current pay stubs with you so that they can easily and thoroughly assess your financial situation.

Check with any or all of the credit bureaus so that you will know your present credit score. This will help you and your lender know what types of loans you are qualified for.

Talk to several lenders. They will be your consultant as far as the mortgage goes and you will need to be comfortable with the way they operate and help you handle financial decisions. They should present two or three viable options from which you may choose.

After finding the lender you prefer, they will want a current appraisal of the property. The lending facility will check with your employer to verify your information and your income. It is important to assess your financial situation to ensure repayment capabilities. They will also take a look at your credit report. They are taking a risk with every loan they make and they want to make sure it is a wise choice for their institution as well as for your family.

Make sure you ask them any questions you have about the refinancing process. There will be several fees incurred when you refinance your home. They may be about the same as they were with the initial mortgage, but asking for specific fee schedules will help you make an informed decision as well. Read through all of their information before you ever sign one document. Make sure that you are aware of all closing costs, title search fees, origination fees and appraisal fees.

After the lender verifies all of your financial information they will let you know if they approve your loan or not. After they approve the loan there will be the closing process to go through again. It will be much like the process that occurred when you obtained the initial mortgage.