Refinancing Guide


Prepare for Refinancing

Before talking to your lender and moving forward with your application, decide if refinancing is the right move for you. Three reasons why home owners choose to refinance their mortgage are:

1.  To get a lower monthly payment
2.  To take out cash
3.  Or to shorten the lifespan of the mortgage

If one of these reasons sounds like something you and your family are interested in, talk to your Sun West lender to see if you qualify. Your lender will consider your credit score, your monthly mortgage payment, the overall value of your home, and your family’s debt-to-income ratio before deciding if you qualify, so it’s a good idea to have these numbers prepared and know if you’re a likely candidate before applying.

Analyze Your Options

Once you know the reasons people refinance a mortgage, it’s important to identify why you might want to refinance.

Are you looking to get a lower monthly payment on your current mortgage? If yes, you may benefit from refinancing. This option can allow you to lower the interest rate on your monthly payment or change your current mortgage term. If you find that the interest rates on your current mortgage are causing you financial stress, or you would like to spread out your payments so you pay less over a longer period of time, refinancing can help you accomplish your goals.

What if you’re wanting to take cash out? Taking a loan out that increases your current mortgage term can help you pay off any outstanding debt, and will give you more freedom to make your mortgage payments over a longer amount of time.

However, if you’re realizing you don’t want to be committed to making mortgage payments for the next 20-30 years, you can refinance your current mortgage to shorten your term and pay less interest over a shorter amount of time. Sounds like a win-win, right?

Send in Your Application

Taking this information into account, is refinancing the right option for you? If so, it’s time to refinance your mortgage with one of our loan officers. Give us a call to schedule an appointment with one of our team members and begin your refinancing application. Bringing your financial information, your goals, and these questions to your new loan officer can help expedite the refinancing process:

  • Will you service my loan after it closes?
  • What are your rates?
  • Are you available to answer my questions throughout the week?
  • How have you helped clients in the past?
  • How long will it take me to get refinanced

Don’t forget to bring important documents to the meeting with your loan officer, like your most recent pay stubs, your two most recent W-2 forms, as well as bank statement from the past two months.

Get an Appraisal

After sending in your application with the help of your loan officer, it’s time to get an underwriting and an appraisal.

For the underwriting process, our team will double check to make sure that all of the financial documents you provided match up with the requirements of the loan.

This process can take between one to two weeks, not including the time it takes to receive the appraisal. An appraisal serves as the final check to make sure the value of your home is as stated by the home sellers. Taking nearby homes into account, the appraiser will make sure you are getting a fair price on the home.

Close on Your Refinance Loan

Once your refinance is officially approved, it’s closing time! When you head to the closing appointment, don’t forget these important documents:

  • A driver’s license or government-issued ID
  • A check made out for the total amount of closing costs, if needed
  • Your Closing Disclosure
  • The numbers of your agent and lawyer in case any questions should arise

Manage Your Mortgage

After you’ve officially closed on your new refinancing loan, the majority of the responsibility falls on you to make sure you’re making payments on time. Your Sun West agent will always be available to answer any questions you have or help you with options should you have difficulty making monthly payments.

Frequently Asked Questions

First, you will need to submit a mortgage application with us, either in person, by phone, or using our easy-to-use online form, whichever makes you feel more comfortable. One of our licensed loan officers will get in touch with you and discuss your mortgage needs and objectives with you. Next, we will check your credit scores and request you to submit the necessary supporting documents so that we can verify your identity, the source of your income, and your current debt for underwriting purposes. An appraisal will also be performed on your selected property. Once you have submitted all the documents and your loan is approved with no outstanding items, we will then prepare the closing documents so that you can get ready to sign your loan package. After your loan is funded, you are on your way to move into your new home.
No, Sun West does not charge an application fee for you to apply for a mortgage.

Sun West has one of the fastest turnaround times in the industry, and we offer 20 day closings, but every borrower’s situation is different, and due to documentation requirements and varying response times from the borrower, the average time to close a loan may be higher.

A mortgage refinance refers to obtaining a new loan for the purpose of lowering your mortgage payments, converting your existing loan into a more affordable or manageable loan, or getting cash out on available equity on your home. There may be a minimum waiting period from the date you closed your previous mortgage, based on the type of refinance you are applying for. Sun West also recommends that you check with your existing lender regarding any prepayment penalties. There will be fees involved when refinancing your home, although you may have the option of rolling these costs into your new loan.

Most types of mortgages require a minimum amount of down payment, except for VA and USDA programs. You may also be eligible for down payment assistance programs that can help you towards minimum down payment requirement on some of the loan programs. On Conventional Mortgages, your lender will require you to pay a Private Mortgage Insurance (PMI) premium as part of your monthly payments if you put down less than 20% of the purchase price of the property. There are government loan programs available with less stringent down payment requirements as well, such as an FHA loan that will require only a 3.5% down payment, but again, these programs also require mortgage insurance premiums. Finally, keep in mind that the amount of down payment you put down for a house will also affect your Loan-to-Value (LTV) ratio, which could then affect the amount of loan you are able to qualify for, or whether or not you will qualify at all.

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