When you need to refinance, Loan Allies will show you the way.
What Does it Mean to Refinance?
Refinancing means replacing an existing loan with a new one. Before you refinance a home, it’s important to understand the process, to know what questions to ask, to research refinancing options, and to understand how refinancing would benefit you. At Loan Allies, we will help and inform you through each of these steps in the process.
No cost and low cost refinance options are available.
Why Do People Refinance?
Refinancing is a great tool that helps homeowners pursue goals and improve their finances. Refinancing can be done anytime during the life of your loan, so don’t hesitate to research your options.
Lower Rates and Monthly Payments
If your interest rate is higher than the average market rate, refinancing might be a good option for you. A lower interest rate would decrease your monthly payment.
Switch Adjustable Rate Mortgage to Fixed Rate
An adjustable rate mortgage loan can be a great tool for first time home buyers, but over time, it could cost more. Switching to a fixed rate mortgage can alleviate stress and uncertainty, since your interest rate will be locked.
Switch Interest-Only to Fully-Amortizing
An interest-only loan can help keep your payments low in the beginning, but you aren’t paying down your principal balance. Refinancing can help you start paying off your loan, often without a drastic change in payments.
Reduce Your Loan Term
You can pay off your home faster and score an exceptionally low credit score! 25/20/15 and 10 years available
Consolidate High-Interest Debt
Enjoy the freedom of having a single bill per month by consolidating your debt into a home equity loan. You can use the cash from the loan to pay off high interest debt, saving you money in the long term.
Using home equity to improve your home is a great way to make your money work for you. Whether you need a new deck, want to install new flooring, or you’re ready to build that dream kitchen you’ve always wanted, refinancing can get you where you want to be.
Leveraging your home equity to purchase an investment property is another great way to make your money work for you. Whether you want to purchase a retirement home, a beach house, or a rental, refinancing can help you achieve your goal.
Remove MIP ( Mortgage Insurance Premium)
If you purchased your home with a FHA loan and less than 10% down, you’re paying MIP. If you have at least 10% in home equity, you can refinance to remove that extra fee you’re paying on a monthly basis.
Justifying a Refinance
Consider refinancing your mortgage to:
Lower your interest rate.
Remove mortgage insurance from your FHA loan.
Lower your monthly payment.
Pay off your mortgage faster.
Pay off high-interest debt by using your equity to get cash.
Convert your adjustable-rate mortgage to a fixed-rate mortgage.
Loan Allies makes refinancing simple and easy. We are happy to offer you a FREE, no-obligation consultation. We’ll help you find the best refinancing option to meet your needs.
How It’s Done
The refinancing process is very similar to the mortgage process. Here are the steps:
1. Schedule a Free Consultation with Loan Allies
We will go over what you want to achieve by refinancing? A lower monthly payment? Lower interest payment? Leverage your home equity to buy a vacation home or a rental property? Receive extra money for a construction project? Get cash to pay off debt? Or simply get cash to spend? Understanding your financial goals will assist you in determining the best refinancing loan for you.
We’ll have a free strategy session to talk through your goals, discuss the refinance process and ideal options for moving forward. As well as answer any questions and or concerns you may have.
3. Submit your Refinance Application
Our loan application is done online and is very simple and straightforward. But if you need assistance, we’re happy to help!
5. Choose Your Loan
We’ll work together to determine the best mortgage product for you.
6. Credit Report
Unlike other companies, we understand that many people don’t like to run a credit check, especially if it can be avoided. We’re different. First, we’ll verify your eligibility. Once we’ve covered the basics, and you meet the criteria to be a good refinance candidate, we’ll pull your credit report, finalizing your qualification to refinance.
7. Loan Estimate
After applying for your mortgage, you’ll receive your loan estimate. This document explains your estimated interest rate, monthly payment, closing costs for your loan, and other important loan details
8. Processing & Underwriting
Once we have all the necessary paperwork and have completed the necessary prequalification steps, we’ll submit your file to the best suited lender for you. Then, the lender will begin carefully processing and verifying your documents to issue an initial approval.
9. Initial Approval
If you meet the initial requirements, the lender will issue a conditional approval, which means you’re approved as long as you provide further requested documentation. We will work with you to gather any documents requested from third parties on your behalf and explain which documents are required to be provided by you and how to acquire them.
The property will need to be appraised to assess its current value. We will order the appraisal through a third party. Once the appraisal is ordered you will receive a link via email to pay for the appraisal; after the payment is made the assigned appraiser will reach out to you in order to schedule a time and gain access to the property to conduct the appraisal.
11. Closing Disclosure
The Closing Disclosure will be provided to you about three business days before closing or even prior. It gives you final details about your refinanced loan, including loan terms, your estimated monthly payments, and other important loan terms.
12. Final Approval
You’re in the home stretch! The underwriter will issue a final approval, which means were cleared and ready to close.
13. Close On Your Refinanced Loan
You’ll meet with a public notary or a lawyer to sign the final loan documents. Once the loan is finalized, your new lender will pay off your old mortgage and your new loan will go into effect.
14. You’ve Refinanced
Congratulations! You’ve successfully refinanced your mortgage.
What Documents Do I Need to Refinance?
*Required docs doesn’t have to be a pdf can be written as content
• Social Security card
• SSA-89 (authorization to release SSN verification) if applicable
• Pay stubs, W-2s, or other proof of income
• Bank statements
• Proof of assets
• Proof of earnest money
• Credit history
• Award letter (SSI, child support, welfare, alimony) if applicable
• Retirement/investment income if applicable
• Employment history
• Credit explanation letter if applicable
• Bankruptcy information if applicable
(for owned properties)
- Most recent mortgage statement
- Proof of homeowner’s insurance
- Property taxes documentation
Depending on your employment situation and type, you may also be asked for further documentation.
Schedule a Free Consultation
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