The increase in homeowners wishing to refinance their Northern Virginia/South Carolina homes to take advantage of continued low interest rates has created a backlog for lenders.  If you don't have all your documentation together, it could mean costly delays in refinancing.  You don't want to lose out on the historically low interest rates we're experiencing right now.  So, be prepared when refinancing your Northern Virginia/South Carolina home mortgage by following these tips:

Documentation - When you decide that you want to refinance your home, begin gathering all the documents you will need to present to your lender, including the two most recent paycheck stubs, tax returns, W2s and bank statements.  If you are refinancing with your spouse and have separate accounts, make sure that you have copies of all the documentation above for each of you.  By having all these documents on hand when you begin the refinancing process, you won't be left scrambling to find them when the lender needs them.  This could cause delays and possibly time you out of the process altogether.

Don't Delay - As soon as your rate has been locked in, get all your documents to your lender as soon as possible.  This means within 24 hours.  Mortgage companies are always on a time crunch.  If you want to be taken care of quickly, get your file to the top of the pile.  That's why gathering your documents ahead of time will be so helpful.  Contact an appraiser to come out to your Northern Virginia/South Carolina home as quickly as possible, too.

Communication - Talk to your loan officer once or twice a week to see how things are moving along.  When your loan officer contacts you, get in touch with them right away. 

Be Knowledgeable - It's OK to ask questions.  In fact, I would encourage you to do so, especially if there's something you don't understand.  Ask your loan officer how long it should take to complete the refi process so you can lock in your rate for the correct amount of time.  If your loan takes longer than you thought it should, you could end up paying a higher interest rate.  So, finding out what your timeframe is is important.  Typically, lenders are looking at a turnaround time of approximately 45-60 days.

Be prepared when refinancing your Northern Virginia/South Carolina home.  It could mean the difference in thousands of dollars in interest payments if you aren't.  Being prepared also alleviates a lot of the stress involved in the refi process.  If you need any help or have questions, please feel free to contact me.

Gene Mock, your Northern Virginia, South Carolina and Washington DC real estate specialist

Originally posted on my Word Press blog here: http://northernvirginiahomes.net/2011/09/15/be-prepared-when-refinancing/.