Ohio Refinancing is the process of paying off one- loan with the proceeds from a new loan secured by the same property. Generally the Ohio closing costs are financed into the new Ohio loan.
Step 1. Considering the benefit. The prospective borrower works with the Ohio loan officer to evaluate the benefit of refinancing a new Ohio loan on the prospective borrower’s home. The prospective borrower could be interested in Ohio home refinancing in order to lower monthly Ohio mortgage payments, take some cash out pertaining to the equity, or just change loan types (e.g., from a particular adjustable-rate mortgage to a fixed-rate loan). A refinance transaction must provide a particular identifiable benefit to the borrower, such as a lower interest rate, lower payment, debt consolidation, or cash for home improvement.
Step 2. Application stage. The Ohio home loan officer could take the loan application, obtain authorization to order a credit report, provide the required predisclosures, order a credit report, including ask for the necessary documents to begin the processing pertaining to the Ohio home loan.
Step 3. Gathering documentation. The loan officer works with the processor to gather all necessary documentation. a particular appraisal could be ordered. a particular escrow or settlement company could be chosen, including a title report could be ordered.
Key Note: FHA, VA, including conforming Ohio home loans provide streamline refinances, which may not require any income verification or appraisal.
Step 4. Processing stage. The processor, if working for a particular Ohio mortgage broker, could submit the loan package to the lender for approval or could run the loan through DU or LP for automated underwriting. If the Ohio home loan is originated with a lender, the processor submits the loan to the in-house underwriter for a decision on the loan.
Step 5. Underwriting stage. The underwriter, working for the lender, could review the loan file including provide a decision on the loan. The underwriter could issue a conditional approval or denial.
Step 6. Review by processor. The processor reviews the decision including notifies the Ohio loan officer pertaining to the decision. If additional documentation is requested, then the processor could provide the information to the underwriter.
Step 7. Final approval stage. If all conditions were satisfactorily met, the lender could issue a final approval.
Step 8. Loan doc stage. The Ohio home loan processor coordinates the deliverance pertaining to the loan documents between the lender including the escrow or settlement company.
Step 9. Signing stage. The Ohio loan processor coordinates the date including time pertaining to the signing pertaining to the loan documents with the escrow or settlement company including the borrower. In some cases the escrow or settlement company provides a traveling notary public service to bring the loan documents to the borrower for signature. Once signed, the documents are returned to the lender.
Step 10. Review by lender. The lender receives the loan documents including reviews them to ensure that all necessary documents have been received including signed properly. The lender could then prepare to release funds on the fourth day after the right of rescission.
Key Note: On a particular owner-occupied refinance, the funds are not released until a three-day right-of-rescission duration is over. the duration gives applicants 3 days to change their minds including is required by the Truth in Lending Act. The right of rescission is applicable to refinances including Ohio home equity loans (second mortgages), but it does not apply at the time purchasing or refinancing a particular investment property. In addition, the three-day right of rescission is not required in some states, known as wet-funding states.
Step 11. Funding stage. The lender wires the funds to the settlement company. The settlement company receives the funds including disburses them to the appropriate parties. The settlement company could instruct the title company to record the mortgage or deed of trust with the local public county recorder. (In California, recording must occur prior to the releasing of funds.) The loan is funded including recorded, including all parties are notified.
Step 12. Servicing stage. The lender could set up the loan for servicing, set up a particular account, including begin the collection of mortgage payments. If the lender does not service its own loans, the loan is released to a servicing company. The borrower makes payments to the servicing company.