If you’ve been living in your current home for several years and realize that it’s time to renovate, you’ll need the necessary funds to make these upgrades and changes. Perhaps you want to do some research to find out if you can lower your mortgage payment, maybe by getting a better interest rate. You’re probably more comfortable with the idea of a refinancing mortgage than you were when you obtained your first home mortgage. Therefore, you can be more relaxed as you gather the information you need.
As you start the refinancing mortgage process, you don’t have to be an expert in this area. However, it would help if you understood the basics so that you can have a productive conversation with the professionals in this industry. For example, you’ll need income documents such as W2s or 1099 forms for the past two years. A lender will also need to see pay stubs covering the last thirty days.
As you work with experts such as those at The Sorrels Team, you’ll also learn that you need information on your current mortgage. In addition, make sure you have bank statements from two recent months. This should be enough to get the process started, although your representative will be able to help you find and organize the information you need.
A New Loan
Keep in mind that getting a refinancing mortgage in Monument is similar to getting a new loan. The major difference is that you’ll be paying off your original loan in the process. Generally, people refinance to take advantage of lower interest rates offered by lenders. You might also choose this path if you want to move to a fixed-rate mortgage rather than the loan you currently have with an adjustable rate.
It’s also a way to use some of the equity or cash value that you’ve built up by making regular payments on your current mortgage. This can give you the funds you need for the renovation or remodel project you have in mind. Whatever your specific reason, talk to a refinance specialist today.