What documents do I need to refinance?

You will need recent pay stubs (30 days), W-2s or 1099s (2 years), bank statements (2-3 months), your current mortgage statement, homeowners insurance declaration page, and a government ID. Self-employed borrowers also need 2 years of tax returns.

How long does it take to refinance a mortgage?

A typical refinance takes 30-45 days from application to closing. FHA Streamline and VA IRRRL refinances can be faster (15-20 days) since they may not require an appraisal or full income verification.

Do I need an appraisal to refinance?

Most conventional refinances require an appraisal ($400-$600). However, FHA Streamline refinances, VA IRRRLs, and some conventional programs (with strong LTV ratios) may qualify for appraisal waivers.

Can I cancel a refinance after closing?

Yes, federal law gives you a 3-business-day right of rescission after closing on a refinance. If you change your mind, you can cancel in writing within this period and the lender must return all fees within 20 days.

How to Refinance: Step-by-Step Process

A complete walkthrough of the mortgage refinance process — from deciding if it is right for you to signing at the closing table. Know what to expect at every stage.

The Refinance Process: Step by Step

Define Your Goal

Why are you refinancing? Lower rate, shorter term, cash out, or removing PMI? Your goal determines the best loan type. Use our refinance calculator to estimate savings.

Check Your Credit and Equity

Review your credit score (free at AnnualCreditReport.com) and estimate your home equity. You will generally need 620+ credit and at least 5-20% equity for most refinance options.

Shop Multiple Lenders

Get quotes from at least 3 lenders. Compare interest rates, APR (which includes fees), closing costs, and loan terms. All mortgage inquiries within 14-45 days count as one credit pull.

Apply and Lock Your Rate

Submit your application with income docs, tax returns, and bank statements. Once approved, lock your rate — typically for 30-60 days. Ask about float-down options.

Appraisal and Underwriting

The lender orders an appraisal ($400-$600) to confirm your home's value. Underwriters verify your income, employment, credit, and assets. Respond quickly to any requests.

Review Closing Disclosure

You will receive a Closing Disclosure at least 3 business days before closing. Compare it to your Loan Estimate — final terms, rates, and closing costs should match closely.

Close and Start Your New Loan

Sign the final documents. You have a 3-day right of rescission — you can cancel within 3 business days if you change your mind. Your old loan is paid off and the new terms begin.

Documents You Will Need

Refinance Document Checklist

Pay stubs — most recent 30 days
W-2s or 1099s — last 2 years
Tax returns — last 2 years (required if self-employed)
Bank statements — last 2-3 months
Current mortgage statement — showing balance and payment
Homeowners insurance — current policy declaration page
Government ID — driver's license or passport

Timeline: What to Expect

Stage	Timeline	What Happens
Application	Day 1	Submit application and documents
Rate Lock	Days 1-3	Lock rate for 30-60 days
Appraisal	Days 5-14	Appraiser inspects home
Underwriting	Days 14-30	Lender verifies everything
Closing Disclosure	3 days before close	Review final terms
Closing	Days 30-45	Sign documents
Rescission Period	3 days after closing	Right to cancel