You've done your research and know the current mortgage rates are still a great deal. You read how lenders are still following tight guidelines and standards. Still, you want to proceed with refinancing your mortgage. But are you ready to proceed?
Organize Your Documents
Before starting your refinance application, get organized, so that when you hand over your application, you'll be able to include most if not all of the supporting documents your lender needs to process (and ultimately fund) your mortgage refinance.
In today's messy mortgage marketplace, there are increased obstacles for even the most experienced mortgage originators, so the more information you can provide up front, the easier it is for a mortgage professional to process your loan quickly and ensure you get the loan you want.
Commonly Requested Information for a Mortgage Refinance
Gather the following information and have paper or electronic copies ready to send to your lender with your loan application package:
- Driver's license or other photo ID, to comply with the Patriot Act
- Most recent statement(s) from any mortgages on the current property
- Most recent statement(s) from any mortgages on other property you own (rental, second home, co-signature)
- Name and contact number of your insurance agent, plus the Declaration and Coverage page for your homeowners insurance policy
- For a condominium, the name and contact information for the Homeowners Association and management company
- All pages of last two months' statements from primary bank account and any other bank or asset accounts that demonstrate reserves
- Your two most recent pay stubs that show year-to-date income
- W2s for the past two calendar years
- If you are self-employed, or if a sizeable portion of your income comes from bonuses, commissions or overtime pay, be prepared to bring your last two years' worth of tax returns, including all schedules, in order to fully document your income.
- If you receive income from an S Corporation, provide your Form K-1 from the past two years
- If you own more than 25 percent of a C Corporation, provide corporate returns from the past two years
Current mortgage rates will not last forever. By being properly prepared when you first contact your mortgage lender, you increase the chances for a very smooth mortgage refinance process at today's best mortgage rates.
