Time from application to loan funding varies, but is typically accomplished in three to six weeks. You can help speed things along by swiftly responding to requests for information and appointments for appraisal, doc signing, and other milestones that rely on your schedule.
When crunching the numbers to determine if a refinance is beneficial, remember to consider closing costs, including but is not limited to, recording and title fees, appraisal costs, and loan origination fees. Your Loan Originator can help you analyze that cost and calculate the cost recoupment timeframe.
Property Inspection Waivers
Some refinance transactions qualify for a Property Inspection Waiver (PIW) which would waive the requirement of a property appraisal. The PIW is typically offered by a lender on a refinance transaction when the value of the property is not in dispute. Waiving the appraisal can save both time and money.
Impact to Credit Score
When applying for new credit, always consider its effect on your credit score. A new inquiry can lower one’s credit score by a few points. If used for debt consolidation purposes, a refinance can also increase a borrower’s credit scores over time by lowering their overall credit utilization and paying off higher balances.