How do you refinance your property?
Next your loan officer will request a few documents:
- Tax returns
- Asset information
- Bank statements
- Savings account balance
- Investments account balance
- Proof of income
- Title insurance
- Homeowner’s insurance.
W-2 & Tax Return
Asset Information, Bank Statements, Savings Account Balance, Investments Account Balance
Lenders will request that the borrower show proof of homeowners insurance to confirm that the borrower has enough coverage on the personal or investment property in case of any unexpected misfortunes. Homeowners insurance protects your property in the event that something happens to the property.
After collecting all of these documents you can submit an application along with all of these documents to the lender of your choice. Be prepared to answer any questions and write a letter of explanation. Letters of explanation are typically requested only when borrowers have a history of bankruptcy or have been late on a monthly payment. After the application process is complete, the borrower will have the option to either secure the market’s current interest rate or wait in hopes of interest rates continuing to decrease before going into underwriting. At the underwriting review, the underwriting team will verify the property’s value and condition and your personal financial health or your business’s financial health. At the end of the underwriting process, the borrower can now close the deal and complete the refinancing process.