How to Transfer a Home Loan
Transferring a home loan from one bank or financial institution to another can save you money, but it requires some research and negotiation. You will first need to find a bank that will agree to your term and payment needs. Locating the right bank will require meetings with loan officers at different banks. Once you have settled on where to transfer your home loan, the process moves more quickly and can be completed in just a day or two.
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Instructions
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Find a new bank to carry your transferred loan. Compare mortgage interest rates several local banks charge. You can call banks to learn this information. Some local newspapers publish this information in real estate sections. Talk to loan officers at two or more banks offering acceptable rates before you decide on your final choice.
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Contact the bank you want to transfer your home loan to once you have made your choice. Ask if you need to get a new appraisal of the home to bring with you to start the loan process. If you owe much less on the home than it is obviously worth, the bank may waive this requirement.
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Set up an appointment with an appraiser if the bank needs an estimate.
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Set up an appointment at the new bank. Bring to the bank a copy of the original loan paperwork, identification, proof of employment, appraisal information and the current balance on the home. In some cases, a bank might run their own valuation of the property. They will contact the current bank to verify the balance, but having it with you will start the process quickly.
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Sign the new loan paperwork once you have agreed on the terms of refinancing. The new bank will send payment to the bank that held the balance of your mortgage, which will transfer ownership of the loan balance to the new bank.Some banks might offer you the difference in the value of the home and what is owed to your former bank. This will start your loan over at full cost of the house, and should be thought through before agreeing to accept this type of transfer. All ownership or deed paperwork will be handled between the two banks. You will receive a new payment book or invoice from the new bank.
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References
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