I Am Applying For A Mortgage Is There A Document That States I Will Be Able To Refinance

Was it easy for homeowners to refinance mortgages during the Great Recession?

At the heart of the recession was the mortgage crisis, so no, it was not easy to refinance and that led to the escalation of the problem.You aked if the devaluation was enough to consider refinancing, and again no, because to be able to refinance you needed enough equity and that was eroded to a level where refinancing became impossible for most. That became a negative feedback as less were able to buy or refinance the values went down even more.Later the government introduced mortgage programs to try and alleviate the problems but by then it was too little too late for most. People's credit rating got shot down because of the high unemployment that accompanied the recession so whatever programs that came about they were not easy to qualify for.As a mortgage broker during that period and for years leading up to the recession. My experience was, I never had a mortgage that I couldn't get done in the years 2003 to 2007. Taking an application meant I was sure to be paid because there were so many different programs to choose from.In December of 2007 I ended out the year with 6 loans pending to be closed no later than the first week in February 2008. It meant I was expecting to close at least one loan per week for at least 5 weeks. Two of my preferred lenders, New Century and Novastar Mortgage had three of the 6 loans and both changed the guidelines in the middle of the process. I scrambled to satisfy whatever new conditions they had set but they both closed their doors and killing those three files. Those were the first files that I had in over 5 years that died. Soon many more followed and eventually only one in 5 applications got funded and you had to pull teeth to get even that one done.

What is the process and experience like to refinancing a mortgage?

In terms of what the process is like, I’ve published a guide on exact topic aimed at Canadians, but the process is likely very similar elsewhere. The key points are below, but you can always red the unabridged article here if you need more info.Evaluate the market: The most important step you can take if you wish to refinance is to evaluate your mortgage on an annual basis as it relates to the market rates in your area. Refinancing a mortgage is only beneficial under the right circumstances, so make sure the timing is right before starting the process. Mortgage professionals familiar with your market are available to help you along the way.Begin your application: Just like with getting a first-time mortgage, you will need to begin the refinance process by applying for a mortgage loan. You will likely work directly with a mortgage professional who can help compile the necessary information and submit your application for review.Research loan types: The type of mortgage loan you get depends on your specific financial situation and the goals you aim to achieve by refinancing a mortgage. There are fixed-rate mortgages, through which your interest rate and monthly payments are consistent throughout your loan term, and adjustable rate mortgages, in which your payments and interest rate may fluctuate. There’s also a combination rate mortgage, which may include both fixed and adjustable interest rates. Carefully consider each option before moving forward.Gather relevant documentation: You will need to make sure that all of your documentation is in order before getting started. You can ask for a list of documents that you will need to submit for your specific loan application. These usually include pay stubs and tax documents.Be prepared: Even if the climate of the market seems to be perfect for refinancing, the process might not be as easy or favorable than you are expecting. Make sure that you consider the fees and costs you might have to pay during the refinance process to determine whether you are actually getting a good deal. To help ensure you’ll truly save money, it’s a good idea to secure an interest rate decrease of at least a half-percent to account for additional fees.If you are considering refinancing a mortgage, the best thing you can do is invest plenty of time into researching the market, crunching the numbers, and evaluating the potential advantages and disadvantages

Is it possible to refinance a mortgage without showing income tax returns?

Yes. In most cases, a lender will require tax returns only when a borrower is self-employed, or has rental/partnership income. The income documentation needed for a wage-earner is typically a recent pay stub showing year-to-date earnings and, depending on the findings generated by the automated underwriting system, possibly the previous year’s W-2.If you are self-employed, you will probably have to provide tax returns to verify your income. The “stated income” loans that got us into so much trouble leading up to the meltdown of 2008 are no longer available.Most self-employed borrowers take advantage of every possible write-off to keep their tax liability low. This may come back to haunt them, however, when they go to apply for a mortgage.This time of year, most people have not yet filed their income taxes. This can be good news since a self-employed borrower can claim fewer deductions for that year and show more net income for qualifying purposes. This is NOT an invitation to commit mortgage fraud; there were actual loan programs prior to 2008 that allowed borrowers to “state” their income without documentation, even if they were, um…being optimistic about how much they…okay, okay; people could lie through their teeth and get away with it. Now, trying to overstate income would amount to lender fraud—a bad idea.Hope this is helpful.

Can you refinance with your existing mortgage company without underwriting or credit checks?

The only standard mortgage program that would allow you to refinance your existing mortgage without an updated credit review is the Interest Rate Reduction Refinance Loan (IRRRL) program offered by the Veteran's Administration (VA). This program is only available to qualified military service men and women that have an existing VA guaranteed loan. The IRRRL program is truly unique in that the VA does not require the lender to re-qualify the veteran's income, assets, or credit history as long as the proposed refinance meets certain benefits to the borrower.Outside of this program, many lenders may offer some form of a "streamlined refinance" program in which existing customers can refinance with less paperwork. The programs generally offer the advantage of not requiring a new property appraisal report but will limit the loan to transactions that reduce the borrower's current interest rate with no options to access equity in the form of cash-out or lower your existing term.Mortgage lenders are generally required to follow regulations issued by the Federal Government under the "Ability to Repay (ATR)" rules that went into effect as part of the Dodd-Frank Act following the mortgage housing crisis. The ATR rule requires the lender to document that the borrower or borrowers have the ability to repay any mortgage that was issued using certain common underwriting standards. These rules generally dictate that your existing lender would need to review and updated credit profile and re-underwrite any proposed mortgage refinance.

Am I allowed to switch mortgage lenders after I declare my "intent to proceed" with their loan package?

Like someone mentioned below until the loan funds which means you signed the final paperwork with the title company and they wired the money, you can do whatever you want.However the biggest risk you have is the appraisal cost you may have paid out of pocket which you will have to do over. That means everytime you switch lenders with a conforming loan you need to get another appraisal. You can thank the appraisal association for rigging that little scam with the policy makers.Good for appraiser, bad for borrower. Just like anything in the mortgage business , borrower always comes last. Along with appraisal remember you will have to redo the application and supply all documents and deal with people asking you for the same docs 3 times. Just keep that in mind.Over time this will change just like Uber changed the yellow cab business.The mortgage blue book. Get fair rate (par rate) and closing cost for your mortgage

Can I Redo My Mortgage if I file for Personal Bankruptcy?

It depends on what you mean by redo.  Obviously filing personal bankruptcy damages your credit rating.  Filing personal bankruptcyresults in a R9 (which is the worst) credit rating which as a first-time bankrupt will remain on your credit report for six years after your discharge.If by redo you mean renew your existing mortgage contract with your current mortgage lender, then you should be able to “redo” your mortgage despite filing personal bankruptcy.  Since most mortgages renew automatically without a new credit application the R9 credit rating that results from filing personal bankruptcy should not affect your renewal.  Your existing mortgage lender isn’t making their decision to renew based on your credit rating at the time of renewal.However, if by “redo” you mean refinance your existing mortgage contract with a different lender, then filing personal bankruptcy will probably affect your ability to “redo” your mortgage.  Since refinancing your current mortgage requires a new credit application the new mortgage lender will see the R9 credit rating that results from filing personal bankruptcy and they will be making their decision based on your credit rating at the time of renewal.Many people who file personal bankruptcy are home owners and renew their mortgages after filing personal bankruptcy.  If you own your home, your mortgage is coming up for renewal and you are planning on filing personal bankruptcy your best bet is to take the automatic renewal offered by your existing mortgage lender.

How can you switch mortgage companies without refinancing?

There’s two parts to your mortgage. The mortgage and the servicing rights. The mortgage is the financial instrument, and the servicing rights are managing collecting your mortgage payment and making sure the owner(s) of the instrument is getting paid.The reason to refinance is a financing decision. I’m guessing that’s not why you’re asking the question. If you are, have a look here to see if refinancing really makes sense: WeVestThe servicing rights can be sold at any time by the bank (most of the mortgages are not originated at the servicer, if they even are attached to a bank). Or to another servicing company. Maybe this has already happened and you’re unhappy with the results? My mortgage was sold and now we have to mail checks, if you can believe such a thing.Here’s the problem, even if you were able to switch (not possible) or refinance, your mortgage could be sold again, possibly back to whoever you are unhappy with.Sorry for the bad news, but hope this is clear.