Refinance Process |
Best Option Home Loans has refinanced over $61 million of loans from 2003-2007, and has assisted hundreds of satisfied clients achieve their financial goals. The refinance process takes 3-4 weeks to complete, and many refinances are completed in less than two weeks! We have streamlined this refinance process to help our clients have a great experience: |
CONSULTATION This consultation process includes taking an application and determining the reasons for the refinance. We will also discuss your house value and both short-term and long-term financial goals. There must be a tangible benefit for refinancing...we need to look at the pros/cons and make an educated decision. BEST OPTION HOME LOANS commits to you that all your options will be explored. BEST OPTION HOME LOANS will not pull credit unless it appears there is a potential loan that will fit your needs. |
CREDIT Once BEST OPTION HOME LOANS is satisfied that a potential loan will fit your financial goals, we will ask your permission to pull credit from the three credit bureaus (Experian, Equifax and TransUnion). We will then discuss your credit report and, in some cases, explore ways to improve your FICO score (credit score). |
AUTOMATED APPROVAL Obtaining a loan approval is crucial to the refinance process. Although not fully underwritten, an automatic underwritten loan approval can be obtained through various means. It will show the loan consultant the documentation required to meet any loan conditions. A great loan consultant will review this carefully and consult with the borrower before ordering an appraisal. |
ORDER APPRAISAL The loan consultant is responsible to order an appraisal of the property. An appraisal is a professional analysis used to estimate the value of the property. It is very important that you or your loan consultant have an appraiser who will give the highest and best value associated with this property. The borrower is usually responsible for direct payment to the appraiser. The appraisal is sent, via email, to the loan consultant. |
DOCUMENTATION This is the biggest responsibility of the borrower. You should be able to email or fax your documentation to the loan consultant. Documentation usually required:
Other documentation that may be required would include business licenses (if self-employed), employment contracts (if a recent pay increase), tax returns (in very few instances this will be required), and any clarification of erroneous items reported on credit (proof of a collection already paid, etc.). |
LOAN SUBMITTAL and LOAN APPROVAL While the appraisal is being completed (usually takes 3-5 days depending on area), the loan consultant will review the documentation sent. Also, the loan consultant will open escrow and then order a preliminary title report (usually takes 3-5 days to receive). Based on the experience of BEST OPTION HOME LOANS, all documentation (appraisal, title, documentation) should then be received within a 3-5 day window to submit the loan package to a lending institution for a fully underwritten loan approval. The file is then given directly to an underwriter who will give a fully underwritten loan approval. |
CLEAR CONDITIONS AND ORDER FINAL DOCUMENTS Once approved, the loan may have some final conditions to clear. Most are what we refer to as an underwriter "dotting their i's and crossing their t's". These could range as simply one additional paystub or a letter of explanation regarding the number of inquiries on credit, to additional proof of a lien on title. Not only is each loan different (like a fingerprint), but each underwriter is different, even among the same lending institutions. Once these conditions, if any, have been sent to the underwriter and cleared, then your final documents are ordered. |
SIGNING & RESCISSION Once documents have been ordered and delivered to the escrow company or attorney, a notary will contact the borrower for a signing. This is usually done in the convenience of your home, but can also be done at the escrow or attorney's office. Once these final loan documents have been signed, they are returned to escrow who then forward them back to the lending institution. However, the loan cannot fund until the rescission period is over. The rescission period includes the 3 business days following signing that allows borrowers time to review the refinance transaction, have any questions clarified, and gives them the ability to cancel the loan if desired (note: there is not a rescission period for any purchase financing or refinances on investment properties). |
FUNDING The climax of refinancing, funding means that the lending institution has wired the loan proceeds to the title company. Then, the title company will physically go to the courthouse and record the loan. After recording, the title company will forward proceeds to the escrow company (or attorney) who will then pay off any existing liens (pay off existing mortgage) and third-party fees. Finally, the borrower will receive any excess funds. Excess funds are usually received within 48 hours of actually "funding" and may be received via check or wired directly into a bank account. |
Refinancing is definitely a process. Fortunately for the borrower, most of the work is done "behind the scenes". BEST OPTION HOME LOANS does it very best to keep you informed every step of the way. The above is just an overview and may NOT include every piece of the puzzle. Your loan consultant should be there for you through every step of the process. The most important part of this process is choosing the BEST loan consultant. One you trust. One who doesn't shy away from questions. One who provides great detail. One who looks out for YOUR best interest. One, who gives you, your BEST OPTIONS. |
BEST OPTION Home Loans 30725 Point Woods Court, Temecula, CA 92591 Direct: 951-541-1334 Fax (toll free): 866-651-2084 |
CA Dept. of Real Estate License No. 01383240 |
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