With refinancing applications on the rise, the amount of closing time lenders are requesting from borrowers has extended beyond the commonplace 30-day period, sometimes to 45 or even 60 days. Staying on top of your refinancing paperwork then, is more important than ever.
One delay, missing page, or mistake could jeopardize or stall your application. But don't worry! I've got four tips to help you stay on top of things when applying to refinance.
1. Be Prepared. As soon as you start applying for a refinance loan, start pulling together all of your paperwork and keep it organized. Lenders often require that you submit recent financial paperwork, including paystubs, w2s, bank statements, and tax returns.
2. Act Fast. Despite the increase in time, it's critical that borrowers applying for refinance loans act fast to meet all of the new timing requirements. Get your paperwork signed and to your lender in a prompt fashion to ensure that the process continues seamlessly.
3. Communicate. Communication is key during the refinance application process, so be straightforward with your loan originator. Don't be afraid to ask about your expected closing timeframe, and check in with them regularly to ensure everything is in order and the lender doesn't need any additional paperwork.
4. Shop Around. Look beyond the big banks when you're applying for a refinance loan and consider quotes from smaller lenders. Often when big banks are overwhelmed with applications, they are known to slow the process down due to limited staff. It never hurts to look, right?
If you're in the process of refinancing and have questions, we're here to help!