Refinancing your mortgage can be a great way to save money on your payment, take advantage of great interest rates, or to free up some extra cash. But how long will it take? We're here to help walk you through the process and any potential delays throughout.
Process of a Refinance
A mortgage refinance is a very similar process to getting a mortgage. Just as with your original mortgage, your lender will request that you fill out an application and provide financial documents to verify your income and identity. However, a difference with a refinance is that you’ll also need to provide documents for your current mortgage as well.
Once your lender has all the necessary information, they will run a credit check and review your financial information. They will then inform you of the new loan amount that you have qualified for, what interest rates are available, and what your payment options would be. If you decide to proceed with the refinance, your new lender will pay off your old mortgage loan and replace it with your new loan..
How Long it Will Take?
Typically, you can expect your mortgage refinance to take around 45 days to complete. However, there are exceptions to this timeline and your refinance could be completed more or less quickly than the typical 45 days. When mortgage interest rates are low or the housing market is active, it may take longer to refinance. This is because the appraisers and other professionals will have busy schedules, which leads to delays due to their availability.
Things You Can Do
There are some things that you can do to help the process of a refinance to move along more quickly or to help avoid any snags during the process.
Have Your Paperwork Ready
Be prepared to provide your lender with the documents needed for your loan application. This will include proof of income, identification, and your current mortgage documentation.
Be Upfront about Finances
It’s important to be transparent and upfront with your lender about your finances. Dishonesty or missing documents can delay the process or even keep you from qualifying for the loan you’re looking for.