ssbzb: Differences in a Refinance Mortgage Application

Friday, 3 February 2012

What is the difference between a mortgage application and a refinance mortgage application? The nuances are minor but important, so here they are:

A refinance mortgage application related to a single property – the home you own whereas a mortgage application may end up being used on any number of properties. Many mortgage applications are submitted to secure pre-approval and this means it won't be associated with any single specific home. You will need all the information about your current mortgage to move forward with a refinance so get together the documentation from your last closing.
With most refinance mortgage applications, you will have already chosen what type of refinance loan you want. Your choices come down to various rates and terms or if you are want a “cash out” refinance. Some lenders require proof of payoff for debt consolidation refinances or they require proof of the home improvements completed with a home improvement refinance loan.

Refinancing is typically easier than home buying and if you are prepared, your refinance mortgage application process will be smooth and easy.

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