How Long Does It Take To Refinance A Mortgage?

A very conservative estimate for the length of time to refinance a mortgage is 2 to 4 weeks. However, in some cases it can take longer. There are many steps in the refinancing process, but there are some things that can be done to expedite the process.

Find A Lender

Shopping around for a broker to refinance a mortgage can take a substantial amount of time. However this is not a step to rush through. Make sure your broker will verify all fees up front and put them in writing so there are no surprises at closing. Also, research the loan’s terms, and interest rates. A loan should match your financial goals.

Credit Scores And Documentation

When you refinance a mortgage, the sooner the bank receives your financial documents, the faster a loan will go through. Submit W-2 forms, tax returns, bank statements and your loan application in a timely manner. A credit check will be done to acquire a credit score. A score under 600 will result in qualification difficulties.

The Appraisal

An appraisal will determine the worth of the home being refinanced by comparing it with other homes that have sold in the area. An appraisal is always required for the loan process. Scheduling an appraiser can take some time, especially if the real estate market is active in your area. Try to complete this step as quickly as possible.

The Approval Or Underwriting

In this step of the loan process, all financial information, the appraisal and the loan application will be evaluated by an underwriter. This stage can last up to one week to complete.

The Final Step

When the loan is approved, a closing takes place. This is where all the documents are signed and the refinance is complete. However it can take up to one week to schedule the closing.

When you refinance a mortgage, from start to finish, it should take 2 to 4 weeks. However, with delays with an appraisal or in underwriting, the process could take an additional 4 or more weeks.

*Affects pricing. With the No Closing Cost Option, borrowers finance the closing costs instead of paying for them at closing. Borrowers who pay closing costs at closing may qualify for a lower interest rate. Some upfront fees (ex. credit report and appraisal) may apply and may be credited at closing.*Refinancing or taking out a home equity loan or line of credit may increase the total number of monthly payments and the total amount paid when compared to your current situation.