Refinance Process

A refi could cut your monthly mortgage bill…

There are several reasons why you may choose to refinance your mortgage loan. Maybe your goal is to lower your monthly payment or allow the loan to be paid off sooner. Perhaps you’d like to change the program terms or access your equity for home improvement. Whatever the reason, refinancing your mortgage can provide real cost-saving benefits.

Interested in Changing Loan Programs?

If a payment adjustment is looming at the end of the fixed period for an adjustable-rate mortgage (ARM) or the period of an interest -only loan, it often makes sense to refinance into a fixed-rate loan or to restart the clock with another ARM.

Need To Lower Your Monthly Payment?

If current mortgage rates are lower than the rate on your existing mortgage, you may be able to lower your monthly payment by refinancing. You may also be able to lower your monthly payment by extending the term of the loan and paying it back over a longer time period.

Want to Pay Off  Your Mortgage Sooner?

By refinancing into a shorter term loan of 20, 15, or 10 years from a 30-year mortgage, you’ll pay off the loan in a much shorter time. Your monthly payment is likely to increase, but the good news is that you save on the amount of interest you pay over time.

We provide refinance solutions like these every day. We offer in-house processing and local underwriting. In addition, our Union Home mortgage advisors have the experience and expertise to know what will and won’t get approved. Simply put, we won’t waste your time. We’ll even stay in touch after you close in case you’re eligible to refinance your loan into an even lower rate.

Many homeowners make the mistake of applying for new credit, depleting their cash reserves or rushing out to buy things as soon as the lender pre-approves their loan. But there are still a few major hurdles to overcome before their loan can close. Here are some things to avoid during the loan process to assure your transaction goes as smoothly as possible:

Don’t make an expensive purchase or apply for new credit! It may be tempting to order that new sofa for your living room and try to avoid making major purchases like furniture, cars, appliances, electronic equipment, jewellery, or vacations until after the closing. Financing that furniture with a store credit card or even one of your own credit cards could jeopardize your credit worthiness (score) during the time it means the most. Using cash to purchase big items can also create a problem because many lenders take into consideration your cash reserve when approving your mortgage.

Don’t get a new job. Lenders like to see a consistent job history. Generally, changing jobs will not affect your ability to qualify for a mortgage loan – especially if you are going to be making more money. But for some people, getting a new job during the loan approval process could raise some concern and affect your application progress.

Don’t switch banks or move money around. As we review your loan package, you will likely be asked to provide bank statements for the last two or three months on your checking accounts, savings accounts, money market funds and other liquid assets. To eliminate potential fraud, most loans require a thorough paper trail to document the source of all funds. Changing banks or transferring money to another account – even if its just to consolidate funds – could make it difficult for the lender to document your funds.

Don’t disregard the refinance loan requirements. In order to process your loan, you need to meet certain requirements, just like you did on your purchase loan. The lender may need copies of your bank statements, W2’s and other paperwork. The lack of current financial information, if your loan requires it, could cause you to delay your loan and the financing you need.