When it's time to refinance your home mortgage, NOLA Lending is here for you. Check out our resources for refinancing, including an application checklist and commonly asked questions to learn more about the process.
Ready to get started? Head over to our application page or contact one of your local lenders to begin refinancing your mortgage to see about possibly saving money!
Mortgage Types for Refinancing
See the common loan options available from NOLA Lending Group for our refinance customers.
Things to Consider
There are many reasons to refinance your home:
- You may be able to;
- Lower your interest rate to reduce your monthly payment
- Reduce the term of your loan to save money over the life of the loan
- Refinance an adjustable-rate mortgage or balloon to a fixed-rate mortgage to eliminate uncertainty
- Take advantage of the equity you’ve built in your home or its increased value by refinancing the balance to receive the difference in cash
Which type of loan is right for you? Consider these factors when making your decision:
- How long do you plan to stay in this house?
- How long have you paid on your current mortgage?
- What is the current rate and term of your mortgage?
- Do you have a second mortgage and/or a home equity line of credit?
- How much equity do you have in your home?
- Would it be beneficial to consolidate your other debt into your mortgage?
Refinance Application Checklist
Use this list to keep track of the information and documents you will need when you apply.
- Full legal name, Social Security number and date of birth
- Primary phone number, email address, home and mailing addresses for past two years
- Gross income amount, including any part-time jobs, overtime, bonuses and commissions
- Secondary income sources and amounts to be considered for the loan such as retirement benefits, veterans’ benefits, disability payments, alimony, child support and rental or investment income
- Name, address and phone numbers of all employers for past two years
- Balance of each bank account, retirement, investment and other asset accounts
- Original home purchase price, year home was purchased and current estimated market value
- Total outstanding balance of all loans secured by the property
- Reason for refinance and the amount you need to borrow
Your mortgage consultant may ask for some or all of these documents. Be prepared to provide additional information as the application process moves forward.
- IRS Form 4506T request for tax transcript
- Pay stubs for the last 30 days with current year-to-date information for all applicants
- IRS Form W-2 for the last two years
- Federal tax returns (IRS Form 1040) for the last two years
- Written explanation if employed less than two years or employment gap exists within the last two years
- Asset/bank statements for the last two months for all accounts listed on application
- Credit explanation letter for late payments, collections, judgments or other negative items in credit history
- Source of funds for any large deposits on asset statements (outside of payroll or gift fund deposits)
- Judicial decree or court order for each obligation due to legal action (lawsuit, judgement, child support)
- Bankruptcy/discharge papers for any bankruptcies existing in credit history
- Payment history for public utilities, phone company, cable, car insurance and other expenses
- Federal tax returns (personal and business) for the last three years
- Profit and loss statement – year to date
- List of all business debt
- Driver’s license and Social Security card
- Homeowners insurance information, including agent’s name and phone number
The Refinancing Group
At NOLA Lending Group we aim to make home refinancing easy. Here’s a short description of how we’ll move through the mortgage process together.
Once you’re ready to refinance, your NOLA Lending Group home mortgage specialist will gather information about your property and collect information about you, too. We’ll need to know things like income, assets and employment history. For a complete list of information you’ll need, see our Application Checklist.
When your application is complete a NOLA Lending Group loan processor carefully reviews your file to ensure accuracy. At this step we order a credit report to determine your credit history and credit score. We will also order an appraisal of the property.
An underwriter reviews your complete file and determines whether your loan will be granted. The underwriter issues the loan approval. There may be requests for additional information during this review process.
The closing process begins once the loan is approved. The NOLA Lending Group closing department carefully prepares all your closing documents and sends instructions to the title agent. The title agent examines the title of the property and works with you to select a closing date. At closing you will sign papers, pay closing costs and finalize the transaction.
Choosing a Lender for Your Refinance
You’ve been through the mortgage process before and now you’re ready to make some changes to your loan. Here are some options to consider when selecting a lender for your refinance.
Top Five Things to Do When Refinancing
Refinancing your home can be a bit confusing, especially if it has been a while since you went through the process. Here are the top five important things to remember as you prepare for your refinance.
When is a good time to consider refinancing?
There is no set rule for when to refinance. Many factors contribute to decision and are dependent on your financial situation. A lower rate will reduce your monthly mortgage payment. Some people have a goal of paying off their mortgage in a shorter time. NOLA Lending Group will guide you through the process and help you make the best decision.
Why choose NOLA Lending Group?
Financing your home is about more than finding an attractive rate. We are committed to providing our clients with the absolute best home buying experience possible, while providing competitive rates. We provide in-house processing and underwriting which means your loan is always in our hands through your loan closing. We do not service loans. We may assign, sell or transfer the servicing of your mortgage loan. We even close your loan with our own funds. Our Mission is to provide superior quality lending practices with uncompromising integrity to all of our customers. We want to be your “lender for life”!
What documentation will be required at the time of loan application?
Supporting documentation will consist of your two most recent pay stubs, tax returns for the past two years, W-2 and/or 1099 forms for the past two years, two months of bank statements, Social Security number of all borrowers and copy of your driver’s license. Additional information such as a Social Security award letter may be required depending on how you are compensated.
What is the difference between a fixed-rate and an adjustable-rate mortgage?
A fixed-rate mortgage has an interest rate that stays the same throughout the life of the loan. With a fixed-rate mortgage you have the security of always knowing exactly what the principal and interest portion of your monthly loan payment will be. The interest on adjustable-rate mortgages can fluctuate up or down. This offers you an opportunity to potentially save on interest costs. The safest adjustable-rate mortgages have annual lifetime rate caps, which limits how high your interest rate may go.
What is a rate lock?
A rate lock protects you from financial market fluctuations. You can choose to lock or not lock your rate. If you lock your interest rate and there are no changes to your loan, your interest rate generally remains the same. If there are changes to your loan, your final interest rate may change.
How do I know when to lock my rate or let it float?
No one can make this decision for you. If you are comfortable with the monthly payment and the other terms of the loan, it makes sense to formalize it in writing. If rates fall after you lock, try to remember that your goal was to secure an affordable loan to purchase the property and you’ve done that.
When can I lock my rate?
You can lock your rate at application, while your loan is being processed and approved, or any time just prior to closing.
Do I need homeowner’s insurance at closing?
Proof of homeowner’s insurance will be required for closing. You will need to present an insurance binder and pay for one year of coverage.
What is the difference between private mortgage insurance and homeowner’s insurance?
Homeowners insurance covers damages to your home, your belongings and accidents as outlined in the policy.
Mortgage insurance protects the mortgage lender if a customer is unable to make payments and defaults on the loan. If you make a down payment of 20% or greater, private mortgage insurance is not required.
What is private mortgage insurance (PMI)?
PMI is required for conventional loans with a down payment of less than 20 percent of the value of the home. You can avoid paying PMI by making a down payment of 20 percent or more.
When can I cancel PMI?
PMI will automatically end when the loan-to-value ratio reaches 78 percent and your loan payments are up to date. Borrowers can request cancellation of PMI when the loan reaches an 80 percent loan-to-value ratio, assuming the loan is current.
Does my home have to be paid off to get a home equity loan or line of credit?
Home equity is the difference between what you owe on your mortgage (and any other outstanding liens) and your home’s current market value. Ask your loan specialist for details on our home equity loans and lines of credit.
How much can I borrow?
The amount is determined, in part, by taking your home’s appraised, fair-market-value, and subtracting the balances of any outstanding mortgages and liens on the property.