Before you shop for a loan you can assemble the required documentation to expedite the process. Certainly, you can wait until your loan is approved, but that can hold up matters. Begin to gather your important papers and have these ready well before your closing date.
1. Current Mortgage Information. If you refinance with another company, your lender will require you to provide your original and second mortgage information. Your lender will issue payoff letter(s) to satisfy your debt.
2. Tax Returns. Most lenders want to see your tax returns for the past two years. Usually, only your federal tax return is needed, not your state return. If you haven’t done last year’s taxes yet, you should complete your filing before applying for a loan.
3. Pay Stubs. Include copies of your most recent pay stubs, typically your last two or three. If you are self employed, bank statements may suffice.
4. Bank Statements. Your lender wants to know how much money you have and where it goes. Expect to make a copy of your most recent checking and savings account statements. Include investment statements and other income producing data as well.
5. Property Survey. Expect to include a property survey, outlining your land and the dwellings on it.
6. Insurance Information. Your lender must know the name of your insurer and will likely require a copy of your coverage. Include hazard and flood insurance documentation, if applicable. Expect that your insurance rate(s) will increase to reflect whatever improvements you make to the home.
7. Termite Letter. Typically, a termite letter is not required when refinancing, only when purchasing new. When required, a recent inspection, typically in the past one to three months and signed by licensed pest exterminator vouching that there is no infestation, is sufficient.
8. Septic and Well Letters. If your home is not connected to municipal sewer, then you have a septic system. If your home is not connected to municipal water, then you have a well. Both systems must be in working order and may, therefore, need letters attesting to the same.
9. Credit Card Statements. If you plan to pay off credit card and other debt with your loan, statements showing the current balance will be required.
When you do come to terms for refinancing, your lender will provide a loan documentation list. With that list you’ll be able to check off what you’ve already completed and quickly handle whatever else your lender requires. The last thing you’ll need is a cashier’s check to cover your closing costs as you finalize your loan.
See Also — How to Refinance Your Home