What you need to refinance your mortgage loan:
- W-2s from the last 2 years of each person on the loan
- Current homeowner’s insurance company’s name and number
- 2 most recent pay stubs of each person on the loan
- Original lender’s contact information
- Most recent bank statements for 2 months
- Most recent statements from 401(k)s, IRAs, mutual funds and securities accounts
- Copy of your current payment coupon for your existing loan with the outstanding mortgage balance
- If you’re self-employed you should bring signed copies of the last 2 years’ tax returns, including all schedules that were filed and a profit/loss statement or balance sheet for the current year.
Refinancing Costs
Just like applying for a home loan, many of the costs associated with originating a home loan are also associated with refinancing. This includes closing costs, title processing, appraisal fees and others. However, there are a few loan options that are available at no cost or very low cost.
Fees that could be associated with a refinance loan are:
- Application Fee – A processing charge by the lender to process the loan.
- Appraisal Fee – An appraiser will determine the current value of your home.
- Credit Report Fee – The lender charges a fee to access your credit report.
- Title Search and Title Insurance – Your current title company may be able to reissue a new policy and save you money.
- Survey – The lender may require a property survey to document the current status of the land your property is on.
- Loan Origination Fee – Usually expressed in points, this is a fee upfront that the borrower pays the lender to underwrite the loan.
- Discount Points – Purchasing discount points at the origination of the loan will lower your interest rate for the life of the loan. Most commonly, 1 point will lower your interest by 1/4%.
- Miscellaneous Fees – VA and FHA loans may have fees associated with them. Document preparation fees, tax service fees, and notary fees may all be included.
- Pre-payment Penalty – Sometimes existing loans carry a pre-payment penalty clause. This will require you to pay a percentage of the outstanding loan amount if paid off early.