Mortgage Refinancing: What You Need to Know, What You Need to Provide

by Gil Mackey
CMR Columnist

Without too much difficulty, you can probably recall everything you went through to qualify for your mortgage. Believe it or not, if you want a home loan refinance you'll have to repeat many of the same steps. Being prepared makes it easier on your mortgage lender, and easier on you.

Home Loan Refinancing: What Do You Need?

When refinancing your mortgage your lender needs to re-evaluate your financial situation. It is very much like applying for a home loan all over again--with the added benefit of having a history of making mortgage payments, as well as any equity you may have in your home. Most mortgage lenders ask you to provide the following:

Recent pay stubs
W2s for the past two years
Income tax returns for the past two years
Homeowners insurance documentation
Title report
Any other assets, such as retirement accounts or savings

Additionally, if you are divorced you need to provide a copy of your divorce decree. The details may vary from one mortgage lender to the next, but you can expect that you need to provide a very detailed picture of your finances in order to qualify for a home loan refinance.

Home Loan Refinancing: Make a Checklist

One of the most important things to remember is that not all mortgage lenders, especially mortgage brokers, can offer you the same home loan refinance options. Your existing mortgage lender may not be able to offer you a better deal than another company. The best thing you can do is to make a checklist of the refinance details and compare offers on the same type of loan and the same loan amount with four or five different lenders. This way you can be sure to get the best possible deal on your home loan refinance.

About the Author
Gil Mackey has been a writer and artist for the past twenty years. In addition to freelance writing for QuinStreet he writes for his local paper, and lives with his two children in Nevada.

© 2008 CMR. All rights reserved.