Most homeowners who are upside down on their mortgage are not aware how simple it is to refinance their home under the HARP program. Refinancing your home in the past used to be a lengthy and somewhat complicated process that more often than not would require $1000’s of dollars in various fees to get the loan closed.
Fortunately in today’s marketplace the entire process has been streamlined to 4 simple steps. The idea is to provide much needed relief in the shortest amount of time with the least out of pocket cost to the homeowner. Anyone who is has been considering refinancing their home should act sooner than later to ensure you receive an interest rate and payment that will make refinancing financially feasible.
Step 1 – Check Eligibility:
Check to see if you are eligible to receive assistance through HARP 2 program by either calling a mortgage broker or simply filling out the “check eligibility” form. Either way there is absolutely no cost to you and you do not have to provide your social security number.
*Scam tip – at no point when you are checking to see if you are eligible for a HARP loan should you be asked to provide your social security number. If the person you have called says they need your social security number to see if you qualify simply hang up the phone because they may be trying to steal your identity.
Step 2 Submit a Loan Application:
The loan application takes about 10 minutes to fill out and can be downloaded to your computer filled out then either scanned or faxed back to the loan officer assigned to you. Unlike checking eligibility you will need to provide more detailed information about yourself including your SS#, banking, employment and any assets and liabilities.
Although we do not charge a fee for submitting a loan application the “FHA” charges a $15 app fee and you will need to pay for a credit report that are generally $15-$20. Your total expense will be approximately $35. In some cases the FHA requires you to have an appraisal done on your home which typically can cost between $200-$400.
$ Tip: Please note most commercial banks charge an application and processing fee. Banks like Emery Federal Credit Union do not as they are not a publicly traded company and are not concerned with appeasing shareholders.
Step 3 Underwriting:
Once the loan application has been completed it will be submitted to the bank that will be underwriting (providing the funds) for your loan. The underwriter verifies all of the information within the application and decides whether or not to approve the loan.
Step 4 Closing
Once underwriting has approved your application the final step is to close the loan. At the closing you will simply sign the several required documents including:
- HUD Settlement Statement
- Promissory Note
- Disclosures and Acknowledgements
- Loan Application
- IRS Form W9
- IRS forms 4506 and/or 8821
- First Payment Letter
- Along with state and or lender specific forms
A typical closing takes about 30 minutes and will cost approximately $350 to cover the cost of the attorney (if applicable) and the notary public.
In Summary: It takes approximately 3 weeks or less from the time of your initial conversation with a mortgage broker to the time you are ready to close your loan. If you have any questions or would like more information about the HARP program or any other loan product give me a call.
As always the call and advice are Free!
Production Team Manager, Mortgage Division
Emery Federal Credit Union