How Long Does it Take to Refinance Your Home? The Process of Refinancing

The process for applying for your first loan, refinancing an existing loan or even seeking a home equity line of credit, can be quite hard. It is recommended that you are familiar witch the process and what is required of you to make the process go faster and easier. The process will go smoothly. This article will tell you exactly what you should have ready and what you should expect so you know exactly what you are doing, every step of the way.


Here is a quick overview of each step:
1. Step 1 – Application and pre-approval process. This is when you provide the correct documents to meet any loan conditions.
2. Step 2 – Underwriting and Appraisal review- This is when the various processers review the documentation that you have provided with the specialists. You may also be asked for additional loan approval or information
3. Step 3 – Title review and document preparation – This is usually all managed by the lender and usually the borrower is not involved.
4. Step 4 – Meet with a closing agent and have the loans notarized

First, you must gather all your required documents-
Documents Time Frame Notes
Personal and business tax returns Most recent 2 year All pages
Pay stubs Most recent or past 30 days Year to date
W2s and 1099s Most recent
Bank and Brokerage statements Two months Show assets stated on application

Some additional are your driver’s license, a deed, a title and the last mortgage statement(if applicable)

Also if you are applying to have the title held in a trust:
Make sure you have the trust agreement and all pages of it.

Next, after you have submitted your application:
You want to close your loan:
Refinance and home equity lines of credit – takes 60 years to close, in most cases- but only after the interest rate is locked in
Purchase loan – 30 days or more to close- usually

Some helpful reminders:
When you are doing your loan documentation, make sure you return all your required things within a week of the receipt of your application package to help make sure your loan actually closes before the interest rate you have locked expires.

Also when you are scheduling the appraisal, make sure you schedule it within three days that the appraiser contacted you. If you wait too long, it could end up being a problem.

This process also applies to any loan, more particularly the fha home loan refinance. All loans usually follow the same format and usually take the same amount of time to process.
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