Written by Heather Schuster – Operations Manager for Transparent Mortgage
Applying for a refinance can seem like a daunting task these days. With all of the increased regulation and more stringent guidelines, it can be overwhelming. But it doesn’t have to be.
We pride ourselves on making the process as easy as possible for our clients and work hard to minimize the hassle imposed by the lenders/banks and their requirements.
After the initial cumbersome task of gathering all of your financial documentation together, it should be a fairly smooth process. I want to give you an inside look at what goes on behind the scenes when you start a refinance, and show that it can be an easy process. Although this may not sound exciting to many of you, it should help ease some of your refinance anxiety in the future.
Once you decide to go ahead with the refinance, there are some basic documents we need to provide to the lender, but more on that at a different time. Once we receive and review all of the documentation is when the real fun starts!
Here is a list of the basic steps your file goes through once the lender receives it:
- Submission: After reviewing all of your documents, we provide the lender with a complete picture of your profile and ability to qualify.
- Approval: Once the underwriter reviews all of your information we receive your loan approval! There are several items that they request at this time, what we call conditions. Some of them we need from you and the others we request from third parties: escrow, title, appraiser, insurance company etc… Every item that comes in has to be carefully reviewed for compliance before we send all outstanding items in together.
- Loan Documents: Once the underwriter signs off on all items provided, the file is cleared to close, and it is sent to the loan document department. Next, we wait for them to actually prepare the loan documents and send to escrow.
- Signing: You are on the home stretch now. The most important aspect of this stage is reviewing the estimated hud for accuracy. There are so many details we have to account for before we can produce an accurate estimate.
- Funding: After the customary 3 day waiting period after signing (owner occupied loans), we are ready to fund. During those three days, we once again have to gather any remaining funding items and do a final review for compliance.
Although I am breaking down this 30-40 day process into these 5 steps, there is much more that goes on behind the scenes. This is a field where you can improve every day. No transaction is perfect, because of all the moving parts and variables, but armed with great anticipation skills, diligence and attention to detail, our job is to try and make it as easy and seamless as possible.
~About the Author: Heather’s been in the mortgage industry since 2002 & has a strong tax & financial background. She’s with Transparent Mortgage since Oct of 2012 and has has recently gained valuable experience working for a local CPA, while studying to earn her degree in accounting and her CPA license as well. She prides herself on building relationships with lenders and escrow companies, and loves nothing more than exceeding client expectations. Heather lives in Huntington Beach, CA and enjoys fishing, riding dirt bikes, and running.
Transparent Mortgage is a leading Mortgage Broker in San Diego and has clients all over California.