Applying for a Mortgage Refinance Loan

Your lender will require you to complete a loan application--similar to the traditional mortgage process. The loan application is a detailed form designed to provide information from you that your lender will need. Lenders use the application to evaluate whether or not they can give you a loan, and if so, the amount of money they can lend you.

The "three Cs" of credit come into play when filling out an application—they are capacity (can you repay the loan?), character (credit history) and collateral (protection for the lender.) The application assesses your financial situation, credit history, the property value, the amount of equity in your home and other data.

Information needed for the loan application may vary from lender to lender, so prior to filling out the application, it's important to discuss with your lender what items will be required.

To save time, have the following items ready:

• Full names, addresses and Social Security numbers of all borrowers.
• Verification of employment and income for each borrower.
  • Pay stubs for the past 30-day period.
  • Past two years W-2s
  • If self-employed, provide a Year-to-Date Profit and Loss Statement and most recent two years Federal Tax Returns on business entity, i.e. corporation, partnership, as well as K-1.
  • Documentation of child support/alimony received if you are going to use it as a source of income. Copies of checks for the last 12 months will be required.
• Complete copy of divorce papers, if applicable. If you are divorced, you can remove your ex-spouses name from the deed by refinancing, because, in a refinancing, the old loan is paid off and you get a new one.
• You will be asked to give an approximate dollar value of the property you are refinancing.
• List of creditors for loans and credit cards, including names, addresses, phone numbers and account numbers.
• Account numbers and balances for savings, checking, stock accounts, 401K, etc. Provide name, address and phone number for each bank or financial institution.
• A list of other assets (cars, cash value of life insurance, etc.)
• Information about your present mortgage will also be required, such as
  • Current monthly payment,
  • Outstanding mortgage balance.
  • Status of property tax and insurance payments.
  • The lender's name, address, phone number and loan number (if you're not refinancing through your original lender).
• If refinancing your condo, provide name and phone number of the management company and the homeowners association.
• Payment information—Name, address, phone number, account numbers, current monthly payment and the outstanding balance for:
  • Any debts to be paid.
• A copy of your homeowner’s insurance declarations page.