How to Refinance With the Same Bank
Many times a borrower looking to refinance his mortgage would like to stay with the same lending institution that he started with originally. This is a great way for the borrower to save money on closing costs and to deal with a lender that he is comfortable with during the process. Refinancing with the same bank as your original mortgage is an easier process than using a new bank.
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Things You'll Need
- Mortgage loan application
- Two months of pay stubs
- Two months of bank statements
- Two years of tax returns
Instructions
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Contact your current mortgage lender for a mortgage loan application. You may or may not have to fill one out if your original one is still in the lender's records.
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Bring your lender your most recent two months of pay stubs and bank statements. If your original mortgage was within the past two years, the lender may or may not need your most recent two years of tax returns.
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Discuss new mortgage terms and rates with your lender. Ask for a Good Faith Estimate and a Truth in Lending Statement on the mortgage. Review both for a good picture of the new loan. The Good Faith Estimate will outline the fees associated with the loan and the Truth in Lending Statement will give you the APR (annual percentage rate) associated with the loan. The APR is the numerical representation of the total cost of the loan for a full year, including fees and monthly interest rate.
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Ask your lender if any fees or steps can be eliminated from the process for being a repeat customer. Origination fees should be reduced and certain documentation needs may be waived, depending on your type of mortgage.
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Fill out any disclosures given to you by your lender and allow him to order an appraisal and title work on your property. Once the process is complete, sign all applicable disclosures at the closing to complete your mortgage refinance.
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Tips & Warnings
Get two other quotes from other lenders to compare your closing costs and APR. If you find a lower offer, ask your current lender to match it, to save you even more in the process.
Just because you were approved during your previous mortgage process with this lender does not guarantee approval the second time around. Rules and regulations may have changed, negatively impacting your application. Be sure to have other lenders in mind if it does not work out with your current lender.
References
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Comments
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I've been trying to refi thru the same bank that holds our note since last september. they claim title issues but there resolution guy says no title issues. had a great percent rate but I think they are waiting to get a higher rate. as for thie title issues I paid for title ins. when I bought and now they are involved. loan officer wasn't to happy to hear that. I feel someone is not doing the right thing.hmmm....
