Home Loan Refinance Steps

Your Application

This occurs between days one and three.

You complete a loan application provided by Mortgage Loans Online. The loan application is called a 1003 form. Once you fill that out, your credit report is pulled. You must then supply the following:

If you work for a company, you'll need to provide:

• Your name, present address and social security number.
• Two (2) previous years' W2s.
• Two (2) most recent pay-stubs.
• Your current mortgage company's account information.
• Insurance declaration or agent's name.

If you are self-employed, you'll need the following:

• Two (2) years worth of tax returns for both personal and business.

If you file your taxes as stated income you'll need the following:

• Two (2) years of business licenses.

Within 3 days of your application, after you have submitted all the required paperwork, you will receive a RESPA package. This package details the approximate costs associated with applying for your loan.

Opening the File

• This occurs between days 3 and 5.
• We order a property appraisal, title commitment, and a loss payee endorsement for homeowner's insurance. We also request a verification of employment (VOE) along with a verification of mortgage (VOM) and a payoff letter. We also request a verification of Deposit (VOD) and await all these documents return.
• A VOE is where an employer is asked to verify for each borrower on the loan, the last two years of employment history and gross income. The employer is also asked to state the probability of continued employment.
• A VOM is where your mortgage holder provides the mortgage payment history.
• A VOD is where your financial institutions are asked to verify the existence of the stated funds in your account(s).

Processing

• Occurs between days 5 and 25.
• The Loan Advisor reviews your credit report and verifies your debt and payment history. The Advisor does this by reading VOE's and VOD's that have been returned to Mortgage Loans Online. If there are any late payments, collections, or judgments shown on the credit report, a written explanation is required from you the borrower.
• The Loan Advisor also reviews the appraisal and checks to see if there are any property issues that may require additional comments by the appraiser.

Lender Underwriting

• Occurs between days 15 and 25.
• The underwriter reviews the loan package to determine whether the loan is approvable. If more information is needed to make a decision, the loan is put into suspense and the additional information is requested from you. It is very important that you respond immediately to any request for additional information at this point in the loan process. If you don't, you may risk delays in closing, thereby not receiving your money in a timely manner.

Pre-Closing

• Occurs between days 17 and 27.
• Once your loan is approved, the approval is reviewed by you. If it meets your satisfaction, a closing date is scheduled.

Closing and Pre-Funding

• Occurs between days 27 and 30.
• You sign the required loan documents. You're required to have proof of identity, such as a driver's license. You may also be required to provide documentation that we make contingent to loan approval.

Funding

• Varies based upon whether your transaction is a refinance or new purchase.
• If your loan is a refinance, you will receive your money three business days after the closing.
• If your loan is a purchase, the seller will receive their money at the closing.