Refinancing Process

When you refinance, you pay off your existing mortgage and take out a new loan. The process for refinancing is similar to what you went through when you got your original mortgage.

To make sure you know what to expect from start to finish, ZABE Mortgage Group has developed a list of refinancing steps.


1. Check Your Credit

Checking your credit is a good place to begin the refinancing process. Your credit score is based on several factors, including how much debt you have, your credit history and whether or not you pay your bills on time. Your credit score can affect whether or not you’ll meet the requirements for a mortgage loan and, if so, what types of loan programs you will qualify for.

You can find out about your credit score by obtaining your credit report:

  • You can get one free credit report each year at www.annualcreditreport.com; read through it carefully and make sure there are no mistakes, as that could affect your score.
  • If you have already obtained a free credit report within the last 12 months, you may have to pay a fee to obtain your credit score
  • If you find mistakes, submit a validation-of-debt-request to each agency and creditor. Make sure you send it certified mail to guarantee a 30-day validation or removal of the inquiry.

2. Look at Your Finances

Next, take a look at your financial obligations. ZABE Mortgage Group offers a refinancing calculator to help you estimate your monthly mortgage payment if you were to refinance at a lower rate.

If you are making payments on credit cards or other high-interest loans, you may want to obtain cash from refinancing to pay down your debt and reduce the amount of interest you are paying.

3. Application Process

At ZABE Mortgage, a Loan Officer will help you to find the right refinancing option for you (some types of refinancing including FHA Streamline or VA Streamline require less documentation then others) and then take you through the application process.

4. Prepare for Closing

Closing (or settlement) is the final step in any real estate transaction, even if you are just refinancing. Prepare for closing by making sure you know what to bring, including:

  • Government-issued photo ID for borrower and co-borrower
  • Cash necessary for closing costs (typically a cashier’s check; not a personal check)
  • Binder for homeowners’ insurance (hazard insurance) and paid receipt

There will probably be other items as well. You will be given a list of items to bring to closing. Also, you may want to avoid opening a new credit card account, buying a car or making any other large purchase prior to closing, as that could change your financial circumstances and potentially delay closing.

5. Closing Costs

Depending on the type of refinancing you obtain, you may be required to pay the following fees:

  • Title search and title insurance costs
  • Application fee
  • Appraisal fee
  • Loan processing fees
  • Points
  • Closing agent fees

In some cases, these fees can be rolled into the new loan.

Call ZABE Mortgage Group to Get Started Today!

We can guide you to the right type of refinancing including the application and closing processes. Find out more about refinancing. Call ZABE Mortgage Group today or apply online.

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