How Does Refinancing Work

Before you refinance your home, it's important to know how refinancing works, what questions to ask, research what options are available, and determine whether or not refinancing will benefit you. At loanDepot, we strive to keep you informed every step of the way.

To help you better understand the refinancing process, we've listed some of the major milestones in the transaction below.

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Step 1: Define your goals

One of the most important steps before deciding whether or not mortgage refinancing can benefit you is to determine what your objectives are. Is your goal to reduce your monthly payment or pull cash out of your equity for home improvements or debt consolidation? Are you looking to fix your adjustable rate? Once you determine your goals, you can take at look at the various home loan programs available to decide which loan option helps you achieve those goals. You can estimate monthly payments with our

mortgage refinance calculator

or visit our

home loan

products to learn about all the options that are available.

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Step 2: Inquire online or call one of our Licensed Lending Officers

Once you've defined your goals and researched all the loan options available, you can submit your information online or pick up the phone to speak with one of our mortgage experts. Your Licensed Lending Officer can answer any questions you have about how to refinance, the loan program you're considering or can make a recommendation for you given your individual goals. We'll make sure that you understand every detail of your loan program and answer any questions you have before moving forward. When you're ready, you can apply online or call us at to speak with a Licensed Lending Officer.

Get started online or call to talk to a licensed lending officer

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Step 3: Select your loan program

If you decide you'd like to move forward with the refinance, your licensed lending officer will confirm your loan program, rate, and payment and will answer any questions you may have. At this point, you can lock in your interest rate to protect you against any fluctuations in the market. Once your rate is locked, you will receive a lock agreement confirming the terms of your loan and your lending officer will collect a lock deposit fee to finalize the lock. The lock deposit will be credited towards your closing fees at the end of the transaction.

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Step 4: Submit your documents

After we receive the signed lock agreement and lock deposit, your lending officer will provide you a list of items to fax or e-mail so that we can verify all your information to get your loan approved and closed quickly. We will then contact you to schedule the appraisal inspection. It is important to schedule the appraisal appointment as quickly as possible to prevent any delays in your closing.

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Step 5: We'll handle it from here

After we receive all your documents, your assigned Account Manager will contact you to go over the next steps, which includes opening escrow, ordering the preliminary title report, and coordinating with all the necessary parties to ensure your loan progresses smoothly and quickly. Once we have everything we need, your loan file will be submitted to the underwriter for review and formal approval.

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Step 6: Close your loan

Upon approval, we will contact you to schedule a loan document signing appointment. This appointment will generally take 30 minutes to an hour and can be done at the convenience of your home or at an approved settlement location. After we receive the signed loan documents, we will close your loan approximately 3 days later. Then your monthly savings will begin or you'll receive the cash for your home improvement project or to consolidate your debt!