The Refinance Process – From Start to Finish

San Diego mortgage


Homeowners in San Diego who are looking to refinance their mortgage loans can typically expect the process to take between 30 – 45 days depending on the situation. It also depends on how quickly the borrower is able to get the property appraised and gather the necessary documentation to submit to the lender. Overall there are several factors that weigh into how long the refinancing process takes.

Steps of a Refinance Process

One of the first elements of refinancing is shopping for a lender. It is recommended that borrowers choose a lender such as Matt Chao who is licensed and who they feel truly has their best interests at heart and who will be upfront and honest about all the applicable charges and fees.

After choosing the right refinance option and submitting the application, the borrower will have to provide documentation to their loan consultant. The documentation submission element of the refinancing process is arguably the most important in terms of the responsibilities of the borrower. Borrowers in San Diego want to be sure that they submit all of the necessary paperwork to avoid delays. Some of the required documents may include:

  • The loan application
  • Copies of tax returns
  • Bank statements
  • W-2s

The borrower’s credit score will also be evaluated but this typically doesn’t require any action to be taken on their part in terms of submitting any documentation. Lenders such as V.I.P. Mortgage have access to the three main credit reporting agencies – Equifax, TransUnion, and Experian. They are able to see anyone’s credit history and score as long as they have the necessary information such as a federal tax ID or social security number and your approval.

The underwriting process also factors into refinancing a mortgage loan. During this part of the process, the borrower’s financial information is evaluated by the lender. The lender will take into account things such as the borrower’s income, their credit history, tax information, and their estimated overall ability to repay the loan. The underwriter takes all of the information that has been given to the mortgage broker by the borrower and comes to a conclusion about their credit worthiness.

During the refinance process, the borrower must also get an appraisal of their San Diego property. Appraisers use a variety of methods and calculations to determine the value of a borrower’s home. Working with your lender to schedule an appraisal and having it completed in a timely manner can make the entire refinancing process go a lot more quickly and a lot smoother.

Closing, or settlement, is the final step in any real estate transaction, even if you are just refinancing. You will be given a list of items to bring with you to closing and in some cases may be required to pay closing fees.

Now may be the perfect time to refinance your home loan. Call Matt Chao at 619-577-4030 to see how much you can save by refinancing or if you have any questions about the process.