Why do you want to refinance?

There are 3 main reasons to refinance your existing mortgage loan: a) obtain a better rate & term, b) cash out, or c) combination.

How long do you plan to live there?

On average, people live in their homes is approximately seven to nine years. Understanding how long you plan to live in a home will affect your financial decisions with regards to your real estate investment strategy and appreciation goals.

Understand your financial situation and consumer credit rating.

Today's marketplace offers a mortgage loan product for just about any financial and credit rating situation. A mortgage consultant will be able to help decipher what are your mortgage options for your requirements.

What will be your monthly expenses?

Based on your income and your new loan amount, you should consider what level of monthly expenses that you are comfortable. Expected increases with income may affect this decision. Typically, lenders consider that a borrower's expense should not exceed 36% of their total monthly income. However, there are many lenders that may work with debt ratios of 60% depending on assets and credit rating.

Closing Fees. Get a detailed quote from Feedisclosure.com

An instant detailed quote will provide an estimated closing cost listing all the typical services with their individual service fees.

Review and interview your service providers

After getting your free FeeDisclsure Detailed Quote, you can review each web profile and interview any of the service providers listed.

Mortgage consultant

A mortgage broker should be selected early in the process. They will be able to advise you on the different service providers, provide recommendations and help finalize your selections. If a recommendation is not a FeeDisclosure member, ask them to join. Membership is free and helps disclose their fees up front. A mortgage consultant is paid by two methods or a combination. The mortgage broker can charge either origination points or is paid directly by the wholesale mortgage lender by selling a higher interest rate. If origination points are charged, then the rate should be lowered.

Decide on a loan program

A mortgage consultant should offer multiple loan program options based on your financial needs, risk tolerance, and how long you plan to live in your current home and consumer credit rating.

Get your Good Faith Estimate

The Good Faith Estimate is a standard disclosure form from the Department of HUD. Your mortgage consultant must provide you a good faith estimate of all your closing fees within three days of your application. While this is an estimate, make sure your mortgage consultant has included all line items charges from each service providers such as title insurance and escrow/ closing companies. Use the FeeDisclosure system to get a Fee Analysis of your line item charges.

Notify your vendors & open transaction with FeeDisclosure.com

After your offer is accepted, notify all your service providers, especially your mortgage broker. Have your mortgage broker, Open your Transaction through FeeDisclosure. As service providers complete their services, FeeDisclosure will communicate their progress to you.

Collect your financial information and appraisal

Depending on the loan program and lender, financial and credit documentation may be required to submit your application for loan approval. Property information such as an appraisal and preliminary title report may be required.

Submit your mortgage loan package

Your mortgage consultant will collect and arrange the required documentation to submit your loan package to the wholesale lender for a mortgage approval.

Review your loan approval

Most initial mortgage approvals will be conditional and require additional documentation that their underwriter may request. Ask your mortgage consultant for your lender's approval. Review the approved rate, loan program and loan amount. Also, make sure the lender has approved your appraisal value.

Get an estimated Closing Statement (HUD-1) from your escrow/ closing agent.

Get your estimated closing statement 5-7 days before closing. Check to make sure there are no additional fees. If there are additional fees, get an explanation immediately. These fees may be negotiable, or there may be an issue that arose. Use the Fee Analyzer to help support your arguments.

Satisfy your final mortgage conditions

Provide any other documentation to meet the lender's additional conditions or requests. Once these have been met, your loan documentation should be ready to print and be signed by you.

Sign documents

A public notary or attorney will be required at the signing of your various documents. Documents may include HUD-1 Settlement Statement (closing statement), deeds, mortgage notes, loan document disclosures, affidavits and other written instruments.

Record instruments

Typically, the title insurance company will record the required documents with the county clerk or courthouse. This will publicize that the proper documents have been filed to transfer ownership and mortgage notes. Once the recording is completed, all the funds will be released by the title insurance company and your transaction will be closed.

Rate service providers

After your transaction has closed, FeeDisclosure will ask you to rate your service providers. This will help reward companies for their good service and provide other consumers more information to make a smarter real estate decision.