June 29, 2007, Newsletter Issue #71: Differences in a Refinance Mortgage Application

Tip of the Week

There are only a few differences between a mortgage application for a home purchase and a refinance mortgage application. Knowing these few differences could save you a few headaches when you are going through the process. Here are a few of the differences that will influence your whole application process.

First, with a refinance mortgage application, there is only a single property in question. As opposed to a home purchase where you are usually paying off one home and moving to another, with a refinance, you are always working with your home. Therefore, you will want to gather up all of the information from when you closed your original mortgage on the house and you will get all of the info you will need for this part of the refinance mortgage application.

Also, with a refinance mortgage application, you have to choose what type of refinance you will be doing. Typically this is a choice between a ‘rate and term' refinance and a ‘cash-out' refinance. If you choose the rate and term there isn't not much work left for you to do. However, if you are doing a cash out refinance for home improvements or other reasons, some lenders will want information as to where the money will be going.

For example, if you are putting on a new roof, it would help your cash out refinance mortgage application if you can provide a quote for the roofing job. A refinance mortgage application is a fairly easy procedure if you are aware of the information you need. Take the information we have provided here and speak with a refinance specialist who can take you through the rest of the process. Good Luck!

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