[JP Mortgage Services]

The Home Equity/Cash-Out Refinance Process

The decision to get a home equity loan or to pull cash out of the value of you home during a refinance transaction is made for many reasons. You may find borrowing against the equity in your home to be a excellent way to consolidate your credit cards, car notes, installment loans, make home improvements, pay college tuition bills, cover wedding expenses, etc.,  all in to one low payment that is in many cases tax deductible (please see your accountant for specifics). The following is a basic summary of the steps involved n obtaining a Home Equity Loan or Cash-Out refinance.

  • Consult one of our loan officers - They can evaluate your current financial situation and discuss the programs available whch will best serve your mortgage needs.

  • Apply for a Loan - Visit with your loan officer and complete a full application. You may apply for a loan before providing all documentation. Some states have mandatory "cooling-off" periods and "right of recisrion" periods which can significantly increase the amount of time a home equity loan or "cash-out" refinance can take, so remember the sooner you start the process, the sooner your loan will fund.

  • Gather Documentation - Depending on the program which best suits your needs, documentation requirements may vary. No Income Documentation, Light Documentation, No Ratio, and many other programs require very little documentation. The following is a general list of documents needed for a fully documented loan.
    Each borrower must have:

    • Copy of Social Security Card and Drivers License

    • Last full month of paystubs with year to date earnings

    • Previous 2 years W-2’s and tax returns

    • Current statements on any/all stock, bond or retirement account

    • Last 3 months statements on any/all bank accounts

    • Names and addresses of each employer for last 2 years

    • Names, addresses, account numbers, and minimum monthly payments on all open loans and/or accounts (cars, credit cards, etc.). Not needed to begin the process

    • Deed(s) of Trust for property owned

    • Copy of current mortgage note of release of lein.

    • Complete copy of divorce decree signed & recorded (if applicable)

    • Bankruptcy, Foreclosure or Notice of Default papers (if applicable)

    • Money for credit report and appraisal

    • Copy of Homeowner's Insurance Declaration page.

  • Appraisals, Surveys and Other Things - It is our responsibility to order your appraisal, surveys and private mortgage insurance (if applicable). It is your responsibility to provide your loan officer with a current Homeowner's Insurance Policy Declaration page.

  • Processing, Underwriting and Closing -   Processors gather, organize and verify documentation. Underwriters make sure the submitted loan package meets lender's guidelines. Underwriters and processors work together with the lender's closing department to ensure that the closing documents and the transfer of funds are received by the title company in proper order and in a timely manner for the closing and funding of the loan.