The Loan Process
Refinancing Your Home
Whether your goal is to lower your monthly payment, cash in your home’s equity, consolidate your debt or pay off your mortgage faster, Peoples can help!
- Start the mortgage application process
Together, we will work with you to find out what your long-term goals are and if a refinance is a beneficial solution. Once we determine if a refinance makes sense, it’s time to apply for your mortgage and really get the process underway. You can do this in person, over the phone or online.
- Gathering the necessary documentation
We will complete an initial review of your mortgage application, and then we will begin the documentation stage of the mortgage process. During this stage, we will be asking for critical documents. These documents will include W-2s, tax returns, bank statements and paycheck stubs. If you are self-employed documentation may vary. Find a complete list of required documents here.
- Review and underwriting your loan
During the underwriting stage the underwriter will be completing 3 critical tasks in regard to your home loan. The first thing the underwriter will do is compile and organize the documentation you have already supplied. Next the underwriter will reconstruct your mortgage scenario to make sure it meets all qualification guidelines. And finally the underwriting team will take steps to verify all the information you have supplied is accurate and authentic. It is not uncommon for the underwriters to ask for additional documentation.
- Determining the value of your home
In the appraisal stage a licensed third party appraiser will estimate the value of your home. This is meant to insure the home is worth the amount being refinanced. The appraiser will use two basic ways to determine a home’s value. The first and most common method is to compare recent home sales in the neighborhood typically over the previous six month period. The appraiser might also consider the replacement cost of the property when estimating value.
- You are approved
The approval you receive at this stage is conditional and assumes that nothing significant will change between now and the time we fund your loan. So remember no major purchases and no radical life changes. For a complete list of important things to avoid during your loan process, click here.
- Clear to close
Congratulations, we have officially gained our clear to close! This means your mortgage has been fully approved and final documents are ready to be prepared. Barring any unforeseen last minute changes, we will be finished with the refi process very soon. At this time a closing date will be scheduled for the loan.
- Close on your Home
At the closing, we will “fund” the loan with a cashier’s check, draft or wire to the previous Mortgage Note holder in exchange for the title to the property. This is the point at which you have completed the loan process and the transaction is “closed,” and your mortgage refinance is complete!
- Start the mortgage refinance process with Peoples Bank
Work with a Mortgage Banker who understands your situation and goals to find the best mortgage product for your financial goal. To start your mortgage application, contact a Mortgage Banker today or fill out a mortgage application online.