So, you’re ready to refinance your mortgage… Now what?
Here are a few helpful tips on what to do and, more importantly, what not to do when it’s time to refi.
DO
Continue to make your regular payments.
…but if you have a payment due right before your scheduled closing, give us a call at (515) 334-8100. It may be best to pay at closing rather than risk having the payment and payoff letters cross in the mail.
Prepare a picture-perfect home for the appraisal.
While a messy home is not really worth less than a clean one, a property appraisal is part art, part science. First impressions can make an impact with an appraiser just as with a prospective purchaser, so pretend like your appraiser is photographing your home for Architectural Digest and prepare accordingly.
Keep your ongoing paystubs and bank statements available.
Our underwriters may request the latest documentation before loan approval as a condition of the loan commitment. It’s important to note that now, underwriters require more documentation than ever before. Even if the requests seem silly, intrusive or unnecessary, remember that if they didn’t need it, they wouldn’t ask for it.
Psst… if you’re UNsure why we’re asking for something, we’d be happy to explain it to you!
DON’T
Apply for new credit.
This is a big one. Changes in credit can cause delays, change the terms of your financing or even prevent closing. It’s UNdeniably risky to apply for new credit during a refi, but if you need to open a new account, please consult with your financial advisor first.
Forget to make your regular payments.
Seriously. This one is so important, we’re including it on the list twice. Missing any payment can impact your ability to close on time.
Make UNdocumented deposits.
If you can’t explain where your cash is flowin’ from, don’t deposit it. Any notable cash deposits can come into question and must be sourced. Make copies of checks and deposit slips, and make sure you have an explanation for deposits that aren’t clear cut.
Change jobs during the process.
If you’re thinking of making a career change, it’s better to wait until the refi process is over. Probationary periods, career or even technical status changes (like taking a leave of absence or going from a salaried to a commissioned role) can be subject to very strict rules.
Start any home improvement projects.
Now, we’re not talkin’ small cosmetic projects like touching up paint—that shouldn’t be a problem. However, projects that disrupt functionality can be an issue if undertaken before the appraisal. If it requires a building permit, creates structural changes or involves a bathroom or kitchen renovation… hit the brakes and add it to a future honey-do list.
You can learn more about the benefits of refinancing here. Or, apply today:
This blog is intended for educational purposes only. For details about specific products or services, see credit union for details. For questions about investments, please consult your financial advisor.