Refinance Mortgage Application

If you’re thinking now might be the right time to refinance your mortgage, it’s a good idea to know what to expect on a refinance mortgage application before you begin to complete the form. The majority of all mortgage loan applicants ultimately have the processing of their loan delayed because they did not have all of the required information at the time they completed their application. Taking the time to do your homework before you attempt to complete your mortgage application will ultimately save you time and frustration.

First, you will need to gather all information related to your existing mortgage. This will include the name of the current lender or mortgage company, the balance or payoff on your mortgage loan, current interest rate, amount of time remaining on the mortgage loan and your current monthly mortgage payment. If you are unsure how much you owe on your mortgage loan you can contact your lender and obtain a payoff amount.

You will also need to provide information about your current employment when you complete your refinance mortgage application. Even though you are making a request to refinance your mortgage loan and not take out a new loan, the lender will still need to verify that you have steady employment and will also need to verify your income.

One section in particular that generally delays loan applicants is the other credit or financial obligation section of the mortgage application. This section refers to all other financial obligations for which you are responsible. Car payments, credit card payments, and any other monthly expenses you must pay are required to be reported on the application. The lender requires this information for processing your refinance request in order to make sure you can handle your combined debt load. While it is true that in many cases refinancing a mortgage results in a lower monthly mortgage payment, most people have incurred additional debt since the time they took out their first mortgage loan.

The lender you are requesting to refinance your mortgage will also need to have very specific information about the property in question, including the address as well as the amount you estimate to be the market value of the home. Most people greatly underestimate the market value of the home they are trying to refinance. Even if you have done nothing but maintain the property since you took out your mortgage, in all likelihood your home has appreciated in value at least 3% per year.

While most people are naturally anxious to get on with the process of refinancing their home once they have made the decision to do so, taking the time to gather all the necessary information for the mortgage application will make the process much easier and faster.