Five Steps to Refinancing
You are thinking about refinancing your home loan, but where do you start? If your financial circumstances or lifestyle change, your current mortgage no longer meets your needs, or you are just dissatisfied with your existing lender, refinancing can help ensure your home loan best suits your individual needs.
Step One – Explore the costs
There are costs when refinancing so consider these and find out exactly what you will be paying. Refinancing is simple with a mortgage broker to guide you through the process, so let us sort out which fees you are likely to be charged.Step Two - Apply to Refinance Your Loan
Once you have a clear idea of what you want, submit your application and don’t forget to include any supporting documentation that is required. You also need to ensure that your existing financial institution is made aware of the refinancing, so that they can provide your new lender with the correct information.
Step Three - Approval & Documentation
After you’ve submitted your application, provided it is approved your new lender will notify you and proceed to issue a Letter of Offer. This needs to be signed and returned as quickly as possible. Your mortgage broker can help ensure all your paperwork is in order.
Step Four - Arranging settlement
Once the lender has ensured that all supporting documentation has been received together with your signed contract, the next step is to organise settlement with your solicitors or conveyancers. You will receive confirmed settlement details in writing. This may take several days.
Step Five - Draw down your loan
Once these steps are complete, it’s time congratulate yourself. You now have a new home loan and hopefully a better one at that!
When done properly, mortgage refinancing can save money and work very well. However, there is a big negative with refinancing – the cost. The reasons for refinancing should be important and the cost benefits in the long run should definitely outweigh the short-terms costs. At Your Local Finance, we are independent and are not selling our own mortgages, so you can re reassured that we will only recommend loans that suit you. Because you are our priority, not the lender.
Still got questions? That’s normal and we are happy to help. Our mortgage brokers are experienced and understand how stressful this time can be for home owners. So call us today on
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