Understanding the Mortgage Refinance Process in Greater Chicago

Steps to a smooth mortgage refinance

By moving forward with a mortgage refinance in the Midwest from United Home Loans, you could lower your interest rate to get a lower payment, change loan programs to a fixed rate, take cash out or consolidate your debt. Now is great time to investigate what it takes to get a mortgage refinance in Illinois, Indiana, Michigan, Minnesota or Wisconsin and take advantage of the record low interest rates. If you are unclear about the refinance process, below are five easy steps to help you through the refinance process.

1. Define your goals.

Decide whether you want to refinance in order to lower your monthly payment, change from an adjustable rate mortgage (ARM) to a fixed rate, take cash out, consolidate your debt or a combination of those reasons. Defining your goals for refinancing will help you pick the right loan for you.

2. Prepare before you shop.

Collect together the information about your current loan including your mortgage rate, the amount you pay every month, the amount you still owe and your loan terms. You should also have an idea of how much your home is worth and check your credit score. By gathering this information, you will better prepared to decide what loan is best for you when you shop for loans.

3. Shop for a new mortgage.

When you shop for a home loan, be sure to shop for the best deal and know all of the costs involved. Be sure to determine not only the mortgage rate but also the closing costs and terms, as these can vary depending on the company. You should also research the lender to find out information about the company like how long they have been in business, if they provide good customer service, and the size of the company. Also find out when you will lock in your rate, how long the process takes and when you will close.

4. Compare your mortgage offers.

After you gather your loan options from a couple different lenders, compare the mortgage rates, terms and costs which normally include an appraisal fee, loan origination fee, closing costs and a new lender's title policy.

5. Select a lender and a loan.

After you select your loan, be sure to lock in your rate so that it does not change. Closing on your home loan normally takes several weeks to complete. Before you close, you will have to complete a formal loan application, allow the lender to check your credit, schedule an appraisal of your home typically set-up through your lender and find out from your lender how much money you will need to bring to the closing so you can get a cashier's check from the bank.

If you have any questions about a mortgage refinance in the Midwest, please feel free to contact of our mortgage bankers. They would be happy to help you and answer any questions you may have.