The Refinance Process

Step 1: Complete an application online or visit the credit union

One of the most important questions before deciding whether or not refinancing can benefit you is to determine what your objectives are. Is your goal to reduce your monthly payment or pull cash out of your equity for home improvements or consolidate your debts? To prepare you for the step process, take time to gather the documentation below to get started:

Income - One month of pay stubs, 2 years of W2s and 2 years of tax returns (self-employed- include all schedules)

Assets - Two months of savings, checking, and retirement account statements. (include all pages)

Debts – Provide documentation to support child support, and alimony obligations if applicable.

Credit History – With your permission, CMF will obtain a credit report used for the loan transaction.

Step 2: Receiving the initial loan disclosures with intent to proceed

Once the initial step has been completed, CMF will send you the initial loan disclosures outlining the loan and its fees. If the loan terms in the disclosure documents are acceptable to you, please sign and return the disclosures (Intent to Proceed). Upon notification of your intent to proceed, your loan officer will then collect a $350 non-refundable application deposit (where allowable by state law, applied toward your closing cost). At this step, your appraisal and title will be ordered.

Step 3: Underwriting for “Credit Approval”

At this step the loan will be reviewed by the underwriter for credit approval. This step is considered an approval, pending the examination of the title report and the appraisal report. Your loan officer will contact you to let you know when your loan has reached this milestone and what condition will be asked from you for the underwriter. Conditions are items that need further explanation or documentation in order to comply with the guidelines. Exception to the guidelines is not an option. The loan officer or processor will explain the details to you and of what is needed to satisfy the underwriter’s conditions. Will there be more conditions? Yes, there may be more conditions followed at step 6. It’s important during this time that you do not make any large unnecessary purchases that may affect your credit score. Your credit will also be re-pulled at the end of the process to ensure your credit scenario has not changed.

Step 4: Receiving the title report and appraisal report

An appraiser main function is to determine the fair market value and current condition of the property. The title report will reveal any liens held against the property, determine ownership and any legal information that coincides with the appraisal report. This helps protect both you as the homeowner and the lender. Once a general examination of both reports has been made by the processor, the loan will move immediately to underwriting.

Step 5: Underwriting for “Full Approval”

Congratulations! Your loan file is now considered a full loan package. Once the underwriter has reviewed the full package, verified that all information is accurate and conditions cleared, a full approval is issued. A full approval will be issued and communicated by the loan processor. This means you’re ready for the next step, you will be “clear to close.”

Step 6: Clear to close, begin the closing process

The closing process begins first with a closing disclosure. This will be emailed to you for your review, outlining the details of your loan. The CD will itemize the total closing cost giving, mortgage information and credits applied to your loan. By law, a mandatory 3 day waiting period will take place following the closing disclosure. Remember step 3, we will re-run your credit report again to verify any changes that could alter the outcome of your loan. You’re almost there!

Step 7: Funding your loan and thereafter

Our closing team will coordinate a convenient time for you to sign your loan documents. The loan docs will be sent back to CMF for a review and the loan will be set up to fund. The settlement company will record the note and the deed-of-trust at the county recorder’s office. Congratulations! We did it!

 

Closing your loan can occur as soon as 30 days from the date of application.