Refinance Process

People refinance for a variety of reasons. Here are the most common ones:

  • You could lower your monthly payments, either by extending the payment period or by securing a lower interest rate.
  • You could reduce the total amount of interest you pay over the life of the loan, either by shortening the term or by securing a lower rate.
  • The refinancing process could also lower your risk. You can refinance out of an ARM loan and into a fixed-rate mortgage to lower your risk and increase your stability.
  • You could refinance to pull cash out of your equity. This is referred to as a cash-out refinance.

When you refinance, you pay off your existing mortgage and take out a new loan. The process for refinancing is a similar process to when you got your original mortgage. However, depending upon the type of refinance mortgage you choose, there may be less documentation required.


1

Determine what type of refinancing you are looking for

Are you looking to take money out of the equity in your home to pay off debt or make improvements? Or are you looking to refinance into more favorable terms if available. Your loan officer will ask some questions to determine your needs.


2

Gather Documentation and Apply

Your loan officer will work with you to collect the required documents such as W2s, pay stubs, bank statements, loan pay off amount, employment history and more. The Florist has made it easy, if you submit your information through BLINK, our online portal, it will gather much of that information automatically, saving you time and money. You can complete your application in-person, over the phone, or via self-service using our secure online application.


Important Note

It is very important that once you have applied for a mortgage that you do NOT apply for other lines of credit such as a department store credit card, or submit a loan application for a car or anything else that would negatively affect your credit score or debt to income ratio.


3

Underwriting

The Florist wastes no time getting your loan application and supporting documents to an underwriter. An underwriter is a mortgage professional who will evaluate your financials including assets, liabilities, work history as well as the loan structure itself. In some instances, the underwriter may require further documentation, we will work with you to get that to them as soon as possible to keep the process moving forward.


4

The Appraisal

In some instances, we can obtain an appraisal waiver. Ask your loan officer about this option. If an appraisal is necessary, we will schedule that for you. An appraisal makes sure the value of the home meets the guidelines of the loan and will determine if you have enough equity to pull out to accomplish your goals.


5

Loan Processing

Our process is goal-driven rather than deadline-driven. Most lenders work based on either a closing date or deadline. At The Florist we do things differently. We get it done as soon as it can be done. We have a streamline process and a team of mortgage professionals that look at your loan several times a day. We track how the appraisal is coming along, work with you to clear up any conditions set by the underwriter and keep you informed along the way. This streamline process allows us to process over 75% of our loans in 15 business days or less.


6

Final Underwriting

The Underwriter reviews your loan again to ensure all conditions have been met and the appraisal has returned a favorable outcome. It may be necessary to pull an updated credit report to ensure no additional debt has been applied for. At this point the loan process is complete and ready to schedule signing of documents and initiate the closing and funding process.


7

Closing and Funding

The Florist stays with you throughout the entire process. Even though there may be another title and/or escrow company executing the signing of your final documents, we are here to answer any questions that might come up. Now, that your signatures are collected on all legal documents, some get notarized and recorded with the county and some go back to the lender. Once the documents are recorded, the funds are now available to be transferred to you if a cash-out, or back into the new loan if you are doing a rate and term refinance. Congratulations! Your refinance is complete.