How to Refinance & Get a Co-Signer Off the Mortgage
Using a co-signer can be an effective way to improve your odds of getting a mortgage if you have a poor credit history or low income. After using the co-signer to get your loan, you may at some point decide that you no longer want him on your mortgage. At that point, you need to refinance your mortgage so that the co-signer can be removed to allow you to get a loan on your own merits.
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Instructions
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Shop around for lenders to work with. Visit lenders in person and look for lenders online. Another option is to use a service to get multiple offers from lenders by filling out a single application.
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Fill out a loan application with the lender that you choose. This involves providing personal information such as your name, address, phone number, Social Security number, job title, employer and income level.
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Provide the financial information the lender requests. Typically, the lender will request pay stubs, tax returns and possibly bank statements to verify that you have enough money to afford the mortgage payments.
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Wait for approval from the lender. Typically, the lender will have an appraisal done on your house, and an underwriter will evaluate all the documentation to make sure that you can afford the mortgage. If everything checks out, the lender will approve you for the mortgage.
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Attend a closing at a title agency. The co-signer need to go as well, to sign a quitclaim deed, which eliminates any claims he had on the property. The old loan will be paid off and the new loan will begin.
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Tips & Warnings
Look for a lender that offers the lowest interest rates and the lowest closing costs. When refinancing, closing costs can amount to a substantial amount. Shopping around could save you some money.
