Refinance your Current Mortgage
What to Expect When Refinancing Your Mortgage
If you are thinking about refinancing your current mortgage, we are here to help you understand the process from start to finish. Refinancing means replacing your existing mortgage with a new loan. Depending on your goals, it may help you adjust your monthly payment, change your loan term, switch loan types, or use available home equity for other needs.
When you are ready to explore your options, contact us first. A TruHome Solutions Mortgage Loan Officer will talk with you about your goals, review the refinance options that may be available, and explain what information will be needed to get started.
Common Refinance Options
No cash-out refinance: This option refinances the remaining balance of your current mortgage into a new loan. Members often consider this when they want to adjust their rate, payment, or loan term without borrowing additional funds.
Cash-out refinance: This option allows eligible Members to refinance for more than what is owed on the current mortgage and receive a portion of available home equity as cash. Members may use these funds for things such as home improvements, debt consolidation, or other financial goals.
Different loan type or term: Depending on your situation, you may be able to refinance into a different mortgage type, such as Conventional, FHA, or VA, or choose a new repayment term that better fits your needs.
Your Mortgage Loan Officer will review available options, estimated payments, loan types, and next steps with you so you can make an informed decision.
Getting Started With Your Application
Once you choose the refinance option that may be right for you, your Mortgage Loan Officer will help you begin the application. You may be asked to provide documents such as income information, current mortgage details, asset statements, employment history, homeowner’s insurance information, and details about any HOA or condo association.
Your Mortgage Loan Officer will also ask whether the names on the deed to your home will remain the same or need to be updated. If changes are needed, they can typically be handled during the final stages of the process once the loan is approved.
An appraisal may be required to determine the current value of your property. If an appraisal is needed, you will be prompted to pay the appraisal fee after you receive and sign your initial disclosures. Please let your Mortgage Loan Officer know if your home is currently under repair or renovation, as some projects may need to be completed before the refinance can move forward.
It is also helpful to avoid major financial changes during this time, such as opening new credit accounts, making large purchases, or changing jobs, without speaking with your Mortgage Loan Officer first.
Processing and Underwriting Review
After your application and initial documents are received, the loan will move into processing and underwriting. During this stage, the team reviews your application, credit report, documents, appraisal, title work, and other required information.
Your Loan Processor will help order third-party items that may be needed, such as title documentation, homeowner’s insurance information, and other required verifications. Your Mortgage Loan Officer or Loan Processor may contact you if additional documentation is needed.
Responding quickly to requests for additional information can help keep the process moving and reduce the chance of closing delays.
If underwriting determines that more information is needed before final approval, your loan may receive a conditional approval. This means the loan can continue moving forward once certain requirements, or conditions, are satisfied.
Conditional Approval
A conditional approval may be issued once underwriting has completed its initial review. Conditions may include items such as updated documents, final appraisal or title information, insurance documentation, or other details needed to complete the loan file.
If anything is required from you, your Mortgage Loan Officer will reach out directly and explain what is needed.
Once all conditions are met, the file can move toward final approval and closing.
We recommend submitting requested documentation as soon as possible so we can help keep your closing on schedule.
Final Approval and Closing
When all required conditions have been satisfied, your loan may be issued final approval, often called “clear to close.” At this point, the Closing Department prepares the final documents for you to review and sign.
Before closing, your Mortgage Loan Officer may request your final homeowner’s insurance policy and verify that you are still actively employed, if applicable.
You will receive closing documents before signing, including your Closing Disclosure when required. This gives you time to review your loan terms, costs, and cash-to-close information before the scheduled closing.
Your Mortgage Loan Officer will be available to answer questions and help you understand your documents before you sign. Once closing is complete, your new mortgage replaces your previous loan.
