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Refinancing a mortgage works much like the process for getting a mortgage on a new home.* This includes providing certain documents to your lender to verify things such as your income and home’s value. The good news is that lenders now have access to electronic methods to obtain key information to help validate eligibility, income, and home values—potentially creating less work for you. Here’s a quick look at some of the top documents needed for refinancing and the refinance process at Mr. Cooper.
What documents do I need to refinance my home?
Everyone’s situation is different, but these are among the most common. When you work with Mr. Cooper, a dedicated Mortgage Professional will let you know exactly what you need after you apply. Remember, in a best-case scenario, your lender will be able to utilize several electronic tools to help eliminate you sending in more documentation than necessary.
Pay stubs
Lenders typically ask for pay stubs from the last 30-60 days as proof of income, but the exact range will depend on the loan program you are applying for. If you are self-employed, you might not need to provide these. But you will need to provide profit-and-loss statements, K-1’s and federal tax returns as proof of income.
W-2s or 1099s
Your lender might want to see tax documents for income verification, as well. For employees, these would be your W-2 forms. For an independent contractor, this will likely be a 1099 form. Lenders usually ask for 2 years’ worth of information.
Tax returns
Whether you get W-2s or 1099s each year, you’ll also typically need to provide 2 years of tax returns (though this will vary depending on the loan program you are applying for). These show trends in your earnings, what income you may be receiving from investments, and other financial information.
Retirement award letters
If you receive Social Security or retirement income, such as a pension, your lender may request a copy of an award letter that states how much your benefit is, together with proof of receipt, such as a bank statement.
Statement of assets
Lenders also typically want to see what other assets you have in order to determine whether you have enough collateral on hand to cover a couple of months’ worth of house payments, as well as any closing costs (if they’re not already rolled into your loan). Your assets may include:
- Bank accounts
- 401k or other retirement accounts
- Mutual funds
- Bonds
- Stocks
- Life insurance policies
Statement of debts
Your mortgage lender will pull your credit to see a statement of outstanding debts to establish your debt-to-income ratio (DTI).
Insurance
Proof of valid homeowner’s insurance is often required when you apply for a refinance to ensure it’s there to protect the lender’s investment in your home in case of a disaster.
How can I refinance my home?
You can get started on the refinance process with Mr. Cooper by phone at 833-702-2511, or apply online. Once your loan is successfully submitted into the loan process, you can expect average turnaround times between 15-45 days, depending on the loan program you select/qualify for. Once you select your loan, you’ll have a dedicated Loan Processor who will team up with your Mortgage Professional to help make the process as smooth as possible.
Ready to get started on a mortgage refinance today? Your options are just a call or click away!
Disclaimers
*By refinancing your existing mortgage, your total finance charges may be higher over the life of the loan.
A cash-out refinance increases your mortgage debt and reduces equity. It may increase the total number and amount of monthly payments, total finance charges, and/or the total amount paid on the mortgage.
Debt consolidation refinances increase mortgage debt, reduce equity, and extend the term on shorter-term debt and secure it with your property. The relative benefits received from debt consolidation will vary. A debt consolidation loan may increase the total number and amount of monthly payments and the total amount paid over the term of the loan. To enjoy the benefits of a debt consolidation loan, borrowers should not carry new credit card or high interest rate debt.
