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How Long Does It Take To Refinance a House?

by | Jun 22, 2020


Now is a good time to consider refinancing your house.  With mortgage rates hitting all-time lows, there are some real bargains to be had that could save you a significant amount of money.  If you’re considering refinancing your home, you may be wondering how long the whole process will take.  Read on to learn the steps involved and how long you should expect it to refinance a house.

Why Refinance A House?

The biggest reason to refinance your home is that it can save you a significant amount of money.  With interest rates being so low, it’s highly likely that you’ll be able to find a mortgage with a much lower rate of interest than the one you currently have. If the difference is large enough, refinancing will mean that your monthly payments will decrease, as will the amount of interest you pay.

Remember that there will usually be fees for refinancing, so you’ll need to factor this into your calculations. Be sure to use a refinance calculator to see how much you could save. You may be surprised at the results.

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What You’ll Need To Do

There are several stages you’ll need to go through to refinance your house. We’ll take a look at all of them and how long you should expect each step to take.

Research

This is possibly the most critical stage, so it’s not something you should rush.   There is a wide range of refinancing options out there, and you want to be sure that you find the best deal for your particular situation. You can speed things up by comparing mortgages online, which will help you find the best refinancing packages as quickly as possible.

Prepare Your Documents

Once you’ve chosen a lender, you’ll need to make sure you have all the relevant documents to hand.  These can include things such as recent pay stubs, statements from all of your bank accounts, and your W-2 forms. Your lender will have information on accurately what documentation they’ll want to see.  As long as you keep your records in reasonable order, getting your paperwork together shouldn’t take over an hour or two.

Complete an Application

Once everything is together, you’ll need to complete the application.  Provided you have all your relevant documents to hand, this stage shouldn’t take more than a few hours. You should always double-check the application before submitting it, as any errors could lead to delays or even your application being rejected.

You May Need An Appraisal

Once the lender has your application, they may decide that they need an appraisal of your home.   This isn’t always required, but you should factor in the time for it just in case. A lender will want to be sure that the house they are refinancing is worth the amount that they’re lending.

The appraisal itself shouldn’t take over a few hours, but the application process will be on hold until the assessment is made. This could happen as quickly as a couple of days but may take as much as a week.

Wait For Underwriting

Once the lender has all the relevant information, the underwriting process will begin.  This is where all the information from your application is examined to see if you can afford the loan, and whether or not the loan is an attractive proposition for the lender. They may decide that the loan is too high-risk, in which case you’ll need to start again with a different lender.

If everything goes to plan, the underwriting can be completed in as little as five working days. If your application is complicated, you may need to wait for as much as three weeks.

Close Your Loan

When the underwriting is complete, you’ll receive a closing disclosure from the lender.  You have up to three business days to review this and make sure that everything looks ok. It’s important to read through all of the information carefully, but it usually wouldn’t take over a day or two.  Once you’re happy, you’ll need to attend a closing meeting to close your loan formally. This can take about an hour, and then your refinancing is complete.

How Long Does the Whole Process Take?

There’s no single answer to that question. Each application will be different, and some applications will take longer than others.  However, you should expect the whole process to take somewhere between 30-45 days. If you work based on things taking around a month to complete, you won’t be too far off. By making sure you’re fully prepared for each step of the process, you can help to speed things along.

Ultimately, however, it’s really in the lender’s hands as to how long the process takes.

Are You Ready To Refinance Your House?

Now that you know how long it will take to refinance a house, you’ll start planning accordingly.  If you’re ready to start the process, then we’re here to help. We can help you find the best refinance mortgage lenders for your needs. With interest rates at historic lows, consider saving money on your repayments. We can help to pair you with the perfect lender and make refinancing your home as smooth as possible.

Use our mortgage analysis tool today, and see how well your current mortgage is meeting your financial goals.

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