Most times, a refinancing homeowner will understandably search for the best mortgage rates and closing costs for their new home loan, and really not put too much thought into how the loan process will be conducted by the mortgage lender.
The refinance mortgage loan process is actually quite important and can mean the difference between a hair-pulling experience for the borrower, or a cozy trip to closing.
If your lender doesn’t spell out their loan process from application to closing, simply ask them. If you get a haphazard and non-flowing response, this could spell trouble later on with your loan process.
There are a few general refinance mortgage loan process questions you can ask your lender to ascertain how your mortgage experience may transpire. First, it is good to know whether your lender has a dedicated loan processing team. Many lenders choose to cut costs and have the loan officer not only sell the loan, but also do all of the processing. A dedicated loan processor is essential for top efficiency and high level of service. There are too many fine details, especially today, in the processing of a mortgage loan to leave in the hands of someone not solely focused on the loan process.
Secondly, you may want to know about your lenders loan processing technology and coordination. Once a borrower’s refinance mortgage application is pre-approved and the rate is locked, a whole chain of activities must be completed and coordinated in order to get to the promised land of a successfully closed home loan. Lenders that utilize a contact management loan processing software procedure can put your loan process ahead of the game. Just consider that such items as document retrieval, order of title, order of appraisal, order of pay-offs, compliance documents completion, underwriting stipulation satisfaction, pre-closing and closing coordination, among others must be completed to get to closing before the rate lock expires. Yes, loan processing technology and coordination is very important.
Finally, you should ask about your lenders communication procedures once your refinance loan is put into process. Will you have access to your loan officer, loan processor, be given timely updates throughout the process, etc. In fact, there are some lenders that give the refinancing borrower online access to their loan process 24-7. The borrower logs-in with their own password and can view all the steps in the loan process that have been completed, and also the remaining items to be completed before closing. You may not think that communication is such a big deal, but when you haven’t heard from your lender in a couple weeks, and can’t get a reply from your loan officer by phone or email, it becomes a borrower’s number one priority. So, it’s a good idea to find out upfront how your lender’s communication procedures work for your refinance mortgage process.
Remember, a great rate and closing cost quote is a wonderful thing, but not if your home loan never makes it to the closing table. But now you are armed with the loan processing questions to ask your refinance lender.
If you are considering a home mortgage refinance now and need some help, have questions, or need some competitive refinance rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
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