Re-Finance

Remortgage/ Refinancing Loan

A refinance occurs when a business or person revises a payment schedule for repaying debt. Mechanically, the old loan is paid off and replaced with a new loan offering different terms. Person switches from old loan to new one provided by the same creditor or by new creditor to get the benefit of rate interest or the increased loan amount.

The refinance process is similar to when you closed on your mortgage. Home value, credit score and debt-to-income ratio will be re-evaluated and there will be an application, approval and closing process.

Application

To apply for your mortgage, you’ll be required to complete an application with us. Application details include information about yourself and the property. Depending on your lender, you may be able to complete your application in the following ways:

 

  • Apply Online
  • Apply in Person
  • Apply Over the Phone

Documents Required for Refinance

After you apply, you will need to provide your consent to proceed and a variety of documents to verify your information. These typically include signed disclosures, bank statements, pay stubs, W2s and tax returns

But to help you get started, here is a brief rundown of the documents you might need apart from basic set of docs which includes Identification and Address Proof when beginning a refinance.

  1. Pay Stubs
  2. Tax Returns and W-2’s and/or 1099’s
  3. Credit Report
  4. Statements of Outstanding Debt
  5. Statement of Assets

Getting a loan Estimate

A lender is required by law to provide a Good Faith Estimate of receiving a loan application. This document estimates the fees and closing costs for your loan; it also summarizes your loan terms and monthly payment.

A lender must also send you a Truth in Lending disclosure (TIL) within 3 business days of receipt. The TIL lists the Annual Percentage Rate (APR) and the total mortgage amount to be borrowed. It must be sent to a borrower 7 days before the mortgage can be closed.

Estimated Loan Costs

  • Application Fees
  • Appraisal Fees
  • Credit Report Fee
  • Discount Points (promo Code)
  • Flood Certification fee
  • Mortgage taxes
  • Title Insurance
  • Origination Fee
  • Recording fees
  • Settlement Fee
  • Tax Service Fee
  • Owners

Application Fees
This fee covers the initial costs of processing your loan and checking your credit report. If your loan is denied, you may still have to pay this fee.

Appraisal Fees
Before approving your loan, TFC may need to order a home appraisal to determine the estimated market value of your property. TFC will take the appraised value into consideration when determining your mortgage eligibility.

Credit Report Fee
when you apply for your loan, lenders will usually look at your credit score from each of the three major credit agencies: Equifax, Experian and TransUnion. The charge for the credit report is often included as part of the application fee.

Discount Points (promo Code)
you can choose to pay discount points and obtain Promo code from your sales agent in exchange for a lower interest rate on a loan. One point is equal to 1% of the loan amount or we offer a free credit card equal to the 20% of the monthly repayment loan value in order to secure and avoid miss payments in case of any financial hardship in future as the usage of credit card for paying loan instalments will not be charged on any APR for one year . Discount points are usually collected in deduction at closing as part of the closing costs the borrower is responsible for.

Flood Certification fee
Before approving your loan, a lender will need to find out whether the home is in a flood hazard area. If it is in a flood hazard area, flood insurance will be required in addition to your homeowners insurance.

Mortgage Taxes
Before approving your loan, a lender will need to find out whether the home is in a flood hazard area. If it is in a flood hazard area, flood insurance will be required in addition to your homeowners insurance.

Origination Fee
Lenders may charge a fee known as an origination fee to cover the costs of processing your mortgage application. This fee may be collected upfront or as part of the closing costs paid by the borrower at closing.
Owners Title Insurance

Recording Fee
Lenders may charge a fee known as an origination fee to cover the costs of processing your mortgage application. This fee may be collected upfront or as part of the closing costs paid by the borrower at closing.

Settlement Fee
A settlement fee is charged by the title company, or attorney, who conducts the mortgage closing. The mortgage closing is when you sign the mortgage loan documents, enabling the mortgage to be recorded and loan funds paid on your behalf.

Tax Service Fee
lender may use a tax service agency to monitor the payment of your property tax bills. The purpose of this is to ensure that the payments are made on time, and to prevent tax liens from occurring. The tax service fee covers the cost of this service

Title Insurance
Lenders require title insurance on the property to protect against adverse claims to the lender’s mortgage interest in the property. This fee is part of the borrower’s closing costs and is collected at closing.

Owner’s Title Insurance
In addition to lender required title insurance, property owners can obtain title insurance to protect against any disputes that may arise, including fraudulent claims against ownership, liens, and undisclosed heirs, as well as certain boundary disputes.

Note: Please Provide all the information to know the available Lendors.

Number of investors available

Documents Required

  • Identification Proof : Driving License or Passport
  • Residence Address Proof : Utility Bill(Gas Bill,Electric Bill or Phone Bill)
  • Income Proof : Last 6 months Bank Statement,check stubs or pay stubs
  • Property Documents
  • Tax Returns and W2 Form
  • Statement of outstanding Debts
  • Mortgage Statement

Receiving a Formal Offer

After you submit your Refinance application, provide your consent to proceed and supply any requested documentation; your mortgage loan officer will forward your paperwork to a loan processor, who will prepare and review your loan.

When your application file is complete, it goes to an underwriter who renders a final decision based on the lender’s criteria.

Your Home Appraisal

Before approving your loan, OCF will need to order a home appraisal to determine the estimated market value of your property.

The appraiser inspects the property and lists the number and size of the rooms as well as other amenities or characteristics that could affect the value. They compare the property to recent sales in the area and price accordingly.

E-Serve Finance will take the appraised value into consideration when determining the amount and terms of a mortgage.

Closing Costs

Closing costs are expenses over and above the price of the property in a real estate transaction. Costs incurred include loan origination fees, discount points, appraisal fees, title searches, title insurance, surveys, taxes, deed-recording fees and credit report charges.

Once you’ve received final approval, you are ready for closing. At closing, you will be required to pay the costs of processing your loan application.

These costs may be about 1.5 to 3% of the total loan amount and are reflected on the Good Faith Estimate or the Loan Estimate.

These typically include charges such as appraisal and origination fees, and title work. In addition to closing costs, you can expect to pay upfront costs throughout the application process.