Refinancing a home loan can be a great way to save money, access equity, or improve your loan terms. However, the process can be lengthy and may take several weeks (6-8) to complete. If you’re considering refinancing your home loan, here’s what you can expect in terms of timing.
Before you start the refinancing process, it’s important to gather the necessary documents and prepare your finances. This includes gathering pay slips, tax returns (if you’re self-employed), bank statements (6m home loan statements), and other financial documents. Some lenders may request less documents than others. You’ll also need to have a clear understanding of your current loan terms and your goals for refinancing.
Once you’ve prepared your finances, you’ll need to submit an application to the lender or mortgage broker. This includes providing information about your income, employment, assets, and credit history. The lender will also review your loan-to-value ratio and other factors to determine your eligibility for refinancing.
Appraisal and Underwriting
After submitting your application, the lender will order an appraisal to determine the value of your home. They will also review your credit history and underwrite the loan to determine the interest rate and terms of the new loan. This process can take several weeks to complete.
Once the loan is underwritten and approved, you’ll need to sign the closing documents and pay any fees or closing costs associated with the new loan. This can take several days or weeks to complete, depending on the lender and the complexity of the loan.
Funding and Disbursement
After the closing process is complete, the lender will fund the new loan and disburse the funds to pay off the old loan. This typically takes a few days to complete.
Overall, the refinancing process can take several weeks to complete, depending on the lender and the complexity of the loan. However, working with a mortgage broker in Melbourne can help streamline the process and ensure that everything moves smoothly. At Mel Finance, our team of experienced mortgage brokers is here to help. Contact us today to learn more about how we can help you with your refinancing needs.