Refinancing 101

Homeownership is a learning process for everyone. After you’ve secured your mortgage and purchased your first home, you may think you’re done with the hard part. But our team at GVC Mortgage is here to remind you that your financial options don’t end on closing day. Refinancing your home loan means that you are essentially replacing your current mortgage with a new one. To help you decide if refinancing is right for you, we’ve put together a step-by-step guide to help educate you on the process.

Is Refinancing Right for You?

Common reasons people choose to refinance are to secure a lower interest rate, to consolidate debt, to pay off their home faster, or to get lower monthly payments on their mortgage. If you’re interested in refinancing, meet with one of our loan specialists to answer your questions and get your loan application started.

The Application Process

After you decide to pursue refinancing, we will review your credit, verify your income, and schedule an appraisal of your property. Remember, higher credit scores qualify for the lowest interest rates. And you’ll need to be prepared to show where your money comes from, so we can see that you have the funds to close the loan. Also, if your appraisal doesn’t compare your home to another home sold in your area in the last 90 days, you could be turned down. We recommend you start with good information about the value of your home and be willing to provide whatever documentation necessary to get your loan approved.

Another Closing Day

Just like when you originally purchased your home, you’ll have another closing day when you refinance. Come ready to sign, and don’t forget your closing costs! When you’ve finished, you’ll have three business days after you sign the closing documents to cancel the refinance, if necessary.

If you would rather discuss refinancing with a home loan professional, then make an appointment with a representative from GVC Mortgage. At GVC, we love to sit down with homeowners or buyers and talk about home loan options. Our office conveniently serves individuals in and around Carmel, Fishers, and Indianapolis. To set up an appointment or to get more information, contact us at (317) 564-4906. You can also get a head start on refinancing your mortgage by applying online.