Refinance an Existing Loan

Find a Lender. Start with your current Lender explain you want to refinance. Realize refinance will have some associated costs.

You will need to telly them why
You want to lower your interest rate. You want to pull out some equity plan to make improvements. Realize refinance will have some associated costs.

If the Loan you are attempting to refinance is a Home loan you will pay points and origination fees and pay for an appraisal.

Basically all the same fees you paid when you first bought your home.

If you are trying to refinance an automobile there won't be these fees but unless you put down a large down payment when you purchased the auto or plan to reduce the balance when getting this new loan you probably don't have much of a chance of getting this done.

If your current lender has no interest in helping you refinance call or logon to some of the major lenders (I'm talking Home Refinance here) such as Countrywide, Capitalonehomeloans, Bank of America, GMACmortgage, or use a broker service.

Discuss your loan with several lenders by discuss I mean, just that discuss, do not apply with them all. In other words get as much info from their representative about their program as you can without giving them your social security number.

You will need to give the lenders you apply with your social security number.

At that point they will immediately run an inquiry to your credit bureau. When you find a program that suits you and you may find it at two or three lenders apply only to those two or three lenders.

Organize your documentation
By this I mean your w-2 forms for the last two years, any 1099's also for the last two years. Have your income tax forms (1040) on hand for the last two years and two years of Bank statements. Also have your Home Insurance Renewal Certificate this is the page your Agent/Insurance Company sends you each year that shows coverage and limits, deductibles and premium. Your Agents phone number should be on there too, if not get it out and keep it handy.

The Lenders you choose to apply with will appreciate you having all your documentation at hand and your loan application will proceed much quicker and smoother if you have all these things ready. Tell the Loan Officer you have on hand and can fax them to him/her if necessary. Now all you have to do is review your lenders offers and pick one.

Choose your loan carefully based on term, rate and cost of the loan. Be sure to request a "HUD" statement before closing and review it closely for any unexpected charges. If there is any charge you don't understand CALL your loan officer immediately and insist they explain it to you and in plain English not lawyer talk. Now you're ready to close. Happy Closing!