In this month’s Mortgage Explainer, we take a look at the steps involved in refinancing your home.

Full Transcript is Below:

– If you’re thinking about refinancing your home here are the four steps that will take you from application to close. First the Application. After we determined that refinancing your home will be beneficial, we start the application. Like your original mortgage application, we collect personal information as well as documentation of your income and assets. Step two, Processing. We gather property information using an Appraisal, Title Report, and proof of Homeowner’s Insurance. We order a credit report and verify income and assets. Step three, Underwriting. The underwriter makes sure all guidelines are met by reviewing the information gathered in the previous steps. You may be asked to provide additional documentation during this step. And certain conditions may have to be met to receive final loan approval. Step four, Closing and Funding. After all conditions from step three are met your loan is clear to close. Your closing disclosures are provided to you and closing is scheduled and completed. A three day rescission period will occur after the closing date. And then the loan will fund. At this point, your old loan is paid off and your new loan begins.