House Refinance Center
Refinancing - Selecting A Broker
How to speed up your loan approval

Refinancing your house is generally an easy and simple process. It would normally
take up to three weeks. However, if there is a rush, your lender can push the deal
through in about five days.

To help the process move along quickly there are a few things you can do. When you
go into the office to complete an application, they are several documents you can
have ready.

  • Employment letter. Bring the original of your employment letter. It should be no
    more than 30 days old. Make a copy and keep it for your records. If your boss is
    going out of town, mention this to your lender so that he can call immediately. It
    would be a good idea to let you boss know that Mr. Jones from ABC Bank will be
    calling about the letter and your refinance.
  • Income verification. Bring the last 2 pay stubs or pay statements.
  • Tax returns. The last 2 years tax returns are helpful. They show your income
    and also some of your deductions. And it will indicate if you are likely to have a
    large outstanding tax bill
  • Bank statements. The last 3 months bank statements shows how you are
    handling your financial affairs. There should be no "bounced" checks, and
    reasonable overdraft fees. The bank statement also shows the mortgage
    payment every month.
  • Mortgage statement. The most recent mortgage statement will show your
    outstanding mortgage balance.

All that should be left is the appraisal and the credit report. You have no control on
these two.

You should have obtained a copy of your credit report before you made the
application for the refinance. If you know of any negative marks on your report,
mention this upfront. Give an explanation of why this mark is on your report. It is
always wise to handle bad news immediately, and frankly.

The appraisal has to be scheduled, so give the lender all the possible phone numbers
to reach you. Try and be available for the appraiser. Have the appraisal fees on hand
so that there is no waiting. And ask the appraiser to release the report as soon as
possible. If you can't be at home when the appraisal is scheduled, make arrangements
for a relative or a friend to be there.

Finally, return all phone calls that the lender makes to you. If he doesn't call, make the
time to call him. Stay on top of the deal at all times.
How to select a mortgage broker

The million dollar question is "should I use a
mortgage broker, or should I do it myself?"

If you are busy with work, travelling out-of-town often,
and having an irregular schedule, a mortgage broker
is the way to go.  The broker can do all the leg work
and you can both keep in touch by email, phones or
faxes.

There are thousands of brokers to select from, but
which one is the right broker for you? Here is what to
look for.

  • Your mortgage broker should have lots of
    experience with refinancing. A broker could be
    great, but if he works exclusively with new home
    purchases, or first time homebuyers, he might
    not be the guy for you.

  • Impeccable reputation is a must. Ask for
    references. Call them and talk to them.
    Obviously you will get the best reviews from the
    "references" so learn to read between the lines.
    And look for any slip-ups in the stories. Check
    the various trade and professional associations
    the broker belongs to.

  • The type of client is a deal breaker. If a
    mortgage broker brags to you that he does a lot
    of sub-prime deals, and that he can get anyone
    with a heartbeat a mortgage, stay away and
    look for a different broker. There sure to be
    trouble down the road and you do not want to
    be drawn into any litigation or investigations.

  • The lenders that the mortgage broker works
    with says a lot about his honesty and integrity.
    Look for a broker  that represents major
    lenders and does FHA loans.

  • The mortgage broker should be a full-time
    professional broker.

  • The appraisers, lawyers and other contractors
    involved in the mortgage industry, that work with
    your broker should give an indication of his
    values. You need to stay with a broker that has
    high values. Sometimes in life bad news is
    inevitable. When this happens you want
    someone that can tell you upfront why the deal
    went sour. Someone who will give you an
    honest answer.

You have to trust your instinct as well. If you get an
uneasy feeling in your gut, walk away. Find another
mortgage broker. Never rush the process of searching
for a broker. If you do, you will settle for the first
broker that hands you a business card.
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