Refinance Do's and Don'ts

DO:

Continue to make your regular mortgage payments. However, if you have a payment due just prior to your scheduled closing, consult with us first. It may be the best to pay at the closing rather than to risk having a loan payment and payoff letter cross in the mail.

Prepare your home for the appraisal. The appraiser will take photos inside and out. While a messy house is not really worth less than a clean one, property appraisal is part art and part science. First impressions can make an impact with an appraiser just as with a prospective purchaser.

Keep your ongoing pay stubs and bank statements available. Underwriters may request the latest documentation available before loan approval or as condition of loan commitment.

Understand that things have changed over the years. Underwriters require more documentation now than in the past. Even if requests seem silly, intrusive or unnecessary, please remember that if they didn’t need it, they wouldn’t ask.

DON’T:

Apply for new credit. Changes in credit can cause delays, change the terms of your financing or even prevent closing. If you must open a new account during this time, please consult with us first.

Change jobs during the process. Probationary periods, career or even status changes (such as from a salaried to a commissioned position, leave of absence or new bonus structure) can be subject to very strict rules.

Make undocumented deposits. Primarily large, but sometimes even small deposits must be sourced unless they are identified. Make copies of checks and deposit slips. Keep your deposits separate and small. Avoid depositing cash.

Start any home improvement projects. Small cosmetic projects like painting are not usually a problem. Anything that can disrupt functionality can have an issue if undertaken before the appraisal. Delay projects that require a building permit, involve a bathroom or kitchen renovation, or create structural changes.

Ever be afraid to ask questions. If you’re uncertain about what you need or what you should do, we're here to help you through the process. Together, we’ll get you on your way to saving money to achieve your goals.