As you’re getting ready to refinance your mortgage loan, here are a few tips to ease the process:
Continue to make your regular payments. However, if you have a payment due just prior to your scheduled closing, consult with me first. It may be better to pay at the closing rather than to risk having the payment and payoff letter cross in the mail.
Prepare your home for the appraisal. The appraiser will take photos inside and out. While a messy house is not really worth less than a clean one, property appraisal is part art, part science. First impressions can make an impact with an appraiser just as with a prospective purchaser.
Keep your ongoing paystubs and bank statements available. Underwriters may request the latest documentation before loan approval or as a condition of loan commitment.
Understand that things have changed. Underwriters require more documentation than in the past. Even if requests seem silly, intrusive or unnecessary, please remember that if they didn’t need it, they wouldn’t ask.
Apply for new credit. Changes in credit can cause delays, change the terms of your financing or even prevent closing. If you must open a new account, please consult with me first.
Change jobs during the process. Probationary periods, career or even status changes (such as from a salaried to a commissioned position, leave of absence or new bonus structure) can be subject to very strict rules.
Make undocumented deposits. Primarily large but sometimes even small deposits must be sourced unless they are identified. Make copies of checks and deposit slips. Keep your deposits separate and small. Avoid depositing cash.
Start any home improvement projects. Small cosmetic projects like painting are not usually a problem. Anything that can disrupt functionality can be an issue if undertaken before the appraisal. Delay projects that require a building permit, involve a bathroom or kitchen renovation, or create structural changes.
Ever be afraid to ask questions. If you’re uncertain about what you need or what you should do, I’m here to help you through the process.