Refinancing – Part Two

October 21st, 2021 Posted by florida mortgage 0 thoughts on “Refinancing – Part Two”

Okay so you made your pro/con list and you have decided that refinancing is the right move for you! Time to get the paperwork ready! Did you know that the top reason for mortgage closings to get delayed is due to paperwork? Well, now you do. This is why we recommend you get as much paperwork prepared and ready once you make the decision to refinance.

To start with, get your income and tax documents together. This will consist of a minimum of the last two years of your W-2’s and your most recent pay stub. If you work for yourself, you will need to gather the last two years of your tax returns. You will also need to provide your most recent bank statements, investment accounts, savings accounts, and retirement accounts if applicable. If you earn commission that does not appear on your paystub (if applicable) or your bank statement, you will need to gather that as well. Be sure to also gather any 1099’s you may have if this applies to you. Also, keep in mind that if you have earned any income from rental properties you may have, that will need to be reported as well.

Now on to your debts! Any debts you may have that is not on your credit report will need to be prepared as well. This includes any child support payments, alimony payments, or any debt settlements you may have with private parties. 

In most cases, you will not need an appraisal to refinance…but there are others where this is something that will need to be submitted. To be ahead fo the game, we would recommend you prepare your home as if you do need an appraisal. If not, no big deal. Making your house ready for appraisal includes mowing your lawn, caring for your plants, painting your home, etc. Make sure that anything that may need to be fixed gets fixed. For instance, if your bathroom sink does not work properly, make sure to get it fixed before the day of your appraisal arrives.

We want to remind you to also make sure you do not purchase any expense items before you start your refinance! If you do this, you debt-to-income ratio will be altered and your credit score may be lowered.

If you have any other questions or need any other tips, please get in touch with us. We are here to help!

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