Step 1: Set your goal
Your goal shapes the loan you choose. Write it down before you get a quote.
- Lower monthly payment: compare today's rates with yours.
- Pay off sooner: look at a 20-, 15- or 10-year term.
- Drop mortgage insurance: check whether you now have 20% equity.
- Get cash: compare a cash-out refinance with a home equity loan.
- Steady payments: move from an adjustable rate to a fixed rate.
Step 2: Know your current loan
Pull up your latest mortgage statement. Note your rate, balance, monthly payment and years left. Check whether your loan has a prepayment penalty. Many common home loans don't have one, but your note will say for sure.
Step 3: Check your credit
Review your credit reports for errors. Pay card balances down before your statements close, and hold off on new credit. If your credit is frozen, unfreeze it at Equifax, Experian and TransUnion before you apply.
Step 4: Get a quote and compare
Look at the rate, the term, the monthly payment and the cash needed to close. With CapCenter's ZERO Closing Costs, CapCenter pays for or waives the closing costs typically required to process the loan (restrictions apply). You still fund prepaid interest and your escrow account.
Step 5: Gather your documents
Your loan consultant will send a list. It usually includes:
- Pay stubs from the last 30 days
- W-2s for the last two years, or tax returns if you're self-employed or have other income
- Bank and asset statements for the last two months, with all pages
- A government-issued photo ID
- Your current mortgage statement and homeowners insurance information
Step 6: Apply, lock and prepare for the appraisal
Apply online, then lock your rate when you're happy with the terms. If your loan needs an appraisal, make sure the appraiser can get into the home and every room. A list of recent upgrades can help.
Step 7: Review, close and wrap up
- Review your Closing Disclosure. You'll receive it at least three business days before closing. Compare it with your Loan Estimate.
- Sign your closing documents with the settlement agent.
- On a primary home, wait out the 3-business-day right to cancel before the loan funds.
- Keep paying your old loan until you're told it's paid off.
- Set up payments with your new servicer, and watch for any escrow refund from your old one.
