Things You Can Do to Make Your Mortgage Refinance Process Easier

A Home Buying Article Contributed by Elizabeth Fox-Wise

Interest Rates are at an All Time Low, So Mortgage Refinance Rates are at an All Time High

The 2000s brought falling mortgage interest rates which have caused many home owners to refinance their mortgages. In fact, studies show that fifty percent of the mortgage applications being received are for refinance mortgages.

The mortgage process can be arduous and stressful for the applicant; and this is true whether you are seeing an initial mortgage or a refinance. A refinance mortgage is basically the same thing as any other mortgage. It is a brand new loan and you must go through the same application process. The only thing making it different is that your are, in essence, the home buyer and the home seller.

However, there are some things that you can do to make the refinance mortgage process go smoother.

Do Your Refinance Mortgage Homework in Advance

There are two things you can prepare for before applying for your refinance mortgage. Spending some time before you begin the application process getting prepared, will help the process go quicker and smoother.

First, determine why you want to refinance your mortgage. Before you can choose the mortgage refinance option that is best for you, you will have to know what needs you want this new loan to meet. Are you looking to refinance your mortgage because you want a lower interest rate? Because you want to switch from fixed to variable or vice versa? Because you are looking to shorten the term of the mortgage? Or because you want to take some cash out of the equity in the home? Understand what you want from your mortgage refinance and be able to communicate those needs to the mortgage lender.

Secondly, prepare your paperwork. The same as when you applied for your initial mortgage, your refinance mortgage application will require supporting documentations. The refinance mortgage application process will go a lot quicker if you have your documentation prepared in advance. This includes copies of pay stubs, bank statements, tax returns, current mortgage statement and other documentation.

Stay on Top of the Mortgage Refinance Process

It is up to you, the mortgage applicant, to be sure that your best interests are being protected and that your mortgage refinance is going to be what you are expecting.

Therefore, you must be sure that you get the interest rate that you are expecting to get. Most mortgage refinance loans will take sixty - ninety days to close. Since interest rates can change on a daily basis, make sure that the interest rate lock period being offered by the lender (how long he will honor today's low interest rate) is long enough to cover the period until the loan is expected to close.

Waiting for the mortgage to close can seem to take a very long time and can be a stressful time for the refinance mortgage applicant. To make this period less stressful be sure to find out a time frame from your lender so you know what to expect when. As the lender to call you when there are updates and progress in the process. If you feel too much time has passed and you haven't heard from the lender, take the initiative to place a follow up call and check on the progress. The more informed the refinance mortgage applicant is, the less stressful the process will be.