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Home Refinance

What documents and information might you need for a quick and smooth refinance process? Look over the checklist below for ideas of what's involved. Note that the list below is generally what you can expect but lenders may vary. Contact your lender for their specific requirements.

  1. A copy of the deed and your current title policy must be provided to the lender either at application or as soon as possible thereafter.

  2. If you are receiving any cash from the refinance, the lender will require a letter stating the purpose for the cash out refinance. This letter is usually required prior to loan approval.

  3. Typically, if you are refinancing to lower your monthly payment, shorten your mortgage term or obtain other financing, you are not permitted to receive any cash at settlement. Any monies in excess of that needed to complete closing of your loan are returned to the lender. The lender will apply these funds to your unpaid balance, thereby reducing the total amount due.

  4. You must request, in writing, to the Payoff Department of your current mortgage holder, a payoff statement, which should also include a per diem factor (daily interest rate). The original copy of the payoff statement should be in the hands of your loan provider one week prior to settlement.

  5. Evidence of paid property and/or school taxes will be required by the title company. Please contact your title company to determine the exact documentation required by them. This information may be obtained from your current mortgage holder or your county/municipal tax department.

  6. You may be required to obtain a termite certification on your home, we will advise you accordingly. If required, this certification should be no older than 30 days prior to the date of settlement and the original certification provided to the lender least one week prior to settlement.

  7. You may be required to have a well and/or septic certification completed on your system. If required, the original certification should be provided to the lender at least one week prior to settlement.

  8. Typically you will need to obtain a one-year (1 year) paid policy for hazard insurance with the lender, its successors and/or assigns, listed as the loss payee. The insurance coverage should be at least the amount of the mortgage. The original policy plus the paid receipt should be provided to the lender at least one week prior to settlement.

  9. Points paid on your mortgage may not be fully deductible for the current tax year and may be required to be deducted over the term of the loan. Consult your accountant or the IRS for specific requirements and deductibility of points.

  10. A rescission period of three (3) business days usually follows settlement. During this period, you will not receive your settlement monies and may cancel at any time without adverse consequences.