OCEAN PACIFIC MORTGAGE

Refinancing Your Home

Why Refinance? | Before You Begin
Choose the Right Loan for You |Picking Rates, Points and APR
Before You Apply | Processing/Closing Your Loan

Why Refinance?

Step 4: Before You Apply

There is one big difference between the refinancing process and the initial home buying process: your knowledge and experience. Since you've been through the home loan process before, you already know what to expect.

In order to begin the refinancing process, you'll need to have the following information ready:

• Names, current addresses, Social Security Numbers for all borrowers

• Your previous addresses for two years

• Names and addresses of employers for the past two years.





• You and your co-borrower's gross monthly income, including bonuses and dividend/interest income

In conjunction with the submission of your application, we will discuss your refinancing needs to help you determine the best loan for you.

Before you complete your loan application, you will need to supply us with certain personal documentation. They may include:

• W-2 Forms: These allow the underwriter to scrutinize income and job history, which directly affect applicants' buying power and help reveal how great a risk they might be to the lender.
  
  

• Profit-and-Loss Statements (for the past two years): These help self-employed individuals substantiate their income. Gross income may appear low, but business expenses are often "written back" in tax deductions. Lenders usually require profit-and-loss statements, at least for the current year (year-to-date).
  

• Pay Stubs (one month's worth): These help confirm current income level and verify the applicant's employment. Upon closing, most lenders reconfirm employment, especially if much time has passed since the loan was underwritten.
  

• Bank Statements (three months' worth): Statements for checking, savings and other accounts indicate the applicants' resources. Underwriters generally hope to establish that the average amount required for a down payment has been maintained over time, not recently obtained.
  

• Other Assets: These include the value of bonds, stocks, life insurance, retirement funds, jewelry, automobiles, etc.
  

• Investment Statements: Statements include these for stocks, bonds and other investments.
  

• Tax Returns (two years' worth): A borrower's returns provide a wealth of financial information. Underwriters look for red flags that could reveal an unforeseen debt in the case of an audit.
  

• Liabilities: These include creditor names and outstanding balances for all debts including notes payable, 401(k) loans, life insurance loans, stock pledges and alimony.
  

• Telephone Numbers and Addresses of Your Workplace: These allow the lender to verify your income.
  

• Real Estate Owned: This includes property address, market value, outstanding liens, rental income, mortgage payments, taxes, insurance and maintenance dues.