Below is an overview of a typical refinance mortgage loan process. Depending on the type of loan you are applying for: Conventional, Jumbo, FHA, VA, & also the state and property type you are purchasing (ie. Condos have some additional requirements) this process may vary. It’s meant to give you an overview of what to expect and what transaction milestones you’ll need to complete during the loan approval process. To help your refinance proceed smoothly review our Tips to a Successful Refinance Transaction Page with additional Do's & Don’ts during the processing of your loan.
There are several important considerations when deciding whether it makes sense to refinance your existing mortgage. Click Here for more information about whether a home refinance makes sense for you. Considerations include the following:
After you reviewed the various options and decide to move forward with the transaction, the next step is to sign loan application disclosures. Foundation Mortgage provides these disclosures to you electronically. E-Sign is a quicker, more efficient and accurate manner to sign your loan application. Once we receive your E-Signed disclosures back we will begin ordering out on your file:
After you have signed your application, your Mortgage Banker will work with you to gather all your credit approval documents such as tax returns, pay stubs, bank statements, etc. to submit the loan to the Loan Processor. It is important that you gather the required documents quickly and completely at this stage of the process. Disorganization or delays at this step can lengthen out the loan process. The cleaner and more complete the file, the better.
After reviewing the file, your Processor/Mortgage Banker will send any outstanding items to you that need to be gathered in order for your file to be submitted to Underwriting. PLEASE NOTE: Underwriters will not review incomplete loan files. Take time to carefully review your “Processing Conditions” with your Mortgage Banker. Delays in the process can occur at this step if all requested items are not provided promptly. The idea is to get through these early stages of the mortgage process as quickly as possible so that your loan is approved prior to your Mortgage Commitment Date (mentioned in step 2 above). Best Practices: Make sure to pay attention to the details on your condition list- Ie:
The Loan Processor will next submit the loan to the Underwriter. The length of time it will take for underwriting to review your loan will depend on the type of loan, but is typically between 24 – 72 hours. Your Mortgage Banker will consult with you on current turn-times when you are getting ready to submit your loan to underwriting. Foundation Mortgage is a boutique direct lender and offers “In-House” Underwriting to better control turn-times and streamlines the process.
Once the Underwriter has reviewed and approved your loan, the Loan Processor and your Mortgage Banker will send you a list of any additional items that need to be satisfied prior to closing your loan. These are called “Underwriting Conditions”. You will gather these items similarly to how you gathered items after the Processor reviewed the loan file. At this point your appraisal may be back. Your processor will send you a copy of the Appraisal for your records and an acknowledgement disclosure for you to complete which confirms that you have received the appraisal. At this time- you should speak with your Mortgage Banker and ask whether it is ok to have the Title Company order the survey (If it is a single family home- not required for condo transactions).
Once you have gathered all of the Items requested by the Underwriter, your Processor will review them in order to confirm that they match what the Underwriter has requested & determine whether we should provide any additional information to support or facilitate approval of your loan.
You will be provided an updated transaction worksheet detailing closing costs and cash-to-close at this point & prior to resubmitting the loan to underwriting for final approval. Typically, we will have received back final fees from various third parties involved in the transaction:
Once your Loan has been given final approval from the Underwriter, it will be forwarded to our Closing Department. Our Closer will review the Updated Closing Statement that you approved in the previous step and will coordinate with the Title Company and Investor in Preparation of the Final Closing Statement. A draft will be forwarded to you for approval at least 3 days prior to closing. It’s important to note that under the new TRID compliance regulations, you must receive your Closing Disclosure at least 3 days (if signed electronically) or 7 days (if delivered by mail) prior to closing.
Refinance Links
How Much Equity Do I Need To Refinance?
What Are The Costs To Refinance?
Rate/Term - No Cash Out Refinance
Overview Of The Refinance Process
Important Tips For A Successful Refinance Process
Refinance Documentation Checklist
VA IRRRL & VA Cash Out Refiances
Contact A Refinance Mortgage Expert
Leverage your investment and use the equity your home has gained over the years
Good for
Renovating your home
Paying down high-interest debt
As an established homeowner, you can improve your financial security by refinancing to a lower payment
Good for
Lowering your monthly outlay
Planning for retirement
Learn how the home buying process works with our mortgage Refinance into a shorter term so you can pay off your mortgage soonere tools and resources page
Good for
Reducing the amount of interest you’ll pay
Becoming mortgage-free faster
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