rosenberg smart guide to refinancing

The Smart Guide to Refinancing is provided to you as a tool to clarify the loan process. Use this easy-

to-follow guidebook to write down your goals, understand your options and keep track of your progress.

When you choose Residential Finance for your refinancing, you gain a team of mortgage professionals

dedicated to finding the right mortgage loan with the best rate and terms to meet your financial objectives.

The Smart Guideto Refinancing

We're here to walk you through the process

Contact me todayMarvin Rosenberg Branch Manager NMLS#: 199005

Tel. 732.446.2900

Ext. 202

Fax. 877.814.9837

[email protected]

www.MarvinsMortgageTeam.com

225 Gordons Corner Road Suite 1D Manalapan, NJ 07726

RESIDENTIAL FINANCE

About Residential Finance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Introduction To Mortgage Refinancing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Quick Guide To Refinancing Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7 Facts About Refinancing You May Not Know . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Refinancing FAQs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Customer Feedback: In Their Own Words . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Benefits Example: Monthly Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Resource: Debt Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Resource: My New Loan Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Resource: Documents Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

Resource: My Goals Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Smart Chart: The Loan Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Step 1: Applying For Your Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Step 2: Disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Step 3: Requesting An Appraisal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Step 4: Review and Rate Lock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Step 5: Underwriting Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Step 6: Quality Assurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Step 7: Closing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

My Loan is Closed: What Happens Next?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Table of Contents

Page 1

Page 3

Page 4

Page 5

Page 6

Page 7

Page 8

Page 9

Page 10

Page 11

Page 12-13

Page 14

Page 15

Page 16

Page 17

Page 18

Page 19

Page 20

Page 21

THE SMART GUIDE TO REFINANCING

YOUR PARTNER: RESIDENTIAL FINANCE

Residential Finance makes your transaction as firm as a handshake. With us, you get the advantages

of a big lender with the personal attention and sound advice of a personal banker. Our dedicated

mortgage professionals offer guidance about the options that best suit your financial goals with a

diverse range of loan options that include:

• FHA (Federal Housing Administration)• VA (U.S. Department of Veterans Affairs)• USDA (U.S. Department of Agriculture)• Conforming• Jumbo• Reverse morgages• And more

With customers in more than 38 states across the country, the team at Residential Finance is where

we are needed. Delivering the highest level of customer service, we have the knowledge and

expertise to guide you along the way, answer your questions promptly, and get your loan approved

at the most competitive rates and terms.

About Residential Finance

PAGE 1

RESIDENTIAL FINANCE

Whether you took on a 15- or 30-year mortgage, with interest rates at all-time lows, you don’t have to keep your existing loan. Take a look at today’s loan rates and another look at your financial goals, and discover how refinancing your existing mortgage can save you money.

HERE ARE SIX REASONS REFINANCING MAY BE THE PERFECT OPTION FOR YOU:

Reduce your monthly payments. You work hard. With today’s lower interest rates, keep more of those hard-earned dollars in your pocket. Start saving money again.

Get extra cash for any reason. Take advantage of your home’s equity to access cash for home improvements such as a bathroom remodel or that garage you’ve been wanting.

Pay off your mortgage sooner than you expected. Shorten the term of your loan and get that mortgage paid off while building up your home equity.

Live a debt-free life. Whether you’re paying off credit cards, personal loans or other debt, they all have interest. The only debt that is tax deductible is your home mortgage. Therefore, consolidate your debt by rolling all of your monthly bills into one convenient payment and focus on getting your home paid off quicker.

Take advantage of a loan that fits your current situation. Perhaps your financial situation has improved since you obtained your current loan. Get into the right loan program that best meets your needs today.

Plan for life-changing events. Have a child who is applying for college or getting married? Refinancing can help you with the finances you need for life events – from braces for your kids to making room for a new baby!

INTRODUCTION TO

Mortgage Refinancing

PAGE 2


QUICK GUIDE TO

Refinancing Options

LOANPRODUCT

EASY QUALIFICATION

LOANFLEXIBILITY

RATESECURITY

LOWER MONEY DOWN

There are many different options when it comes to refinancing. The best way to determine which loan program works best for you is to

talk with me about your goals. I’m here to help you understand your choices and make your financial transaction easier.

HERE IS A BRIEF OVERVIEW OF THE LOAN PROGRAMS AVAILABLE TO YOU:

Helpful Tip: Did you know that millions of homeowners qualify for VA, FHA and

USDA programs, but not all lenders offer them? Many times these loans provide better terms and

conditions than what is offered at your local bank. Ask me about your options.

30-YEAR FIXED

15-YEAR FIXED

FHA LOAN

VA LOAN

JUMBO LOAN

REVERSE LOAN

ADJUSTABLE RATE LOAN

PAGE 3

RESIDENTIAL FINANCE

7 FACTS ABOUT REFINANCING

You May Not Know

1) Lowering your interest rate isn’t the only way to save money. Even if you

refinance at the same rate as your first mortgage, it’s possible for you to lower your monthly

payment. Let’s discuss how that can work in your favor.

2) You can get a mortgage customized to your needs. When you think about

refinancing, you probably think about a 15-year or 30-year loan. However, Residential Finance

can customize a loan to match the years that are left on your existing loan.

3)Access a better interest rate by improving your debt-to-income ratio. If you

pay down debt, even if it’s just months before you apply for a refinance, you may qualify for

a better interest rate & save more money over time.

4)There's a difference between a mortgage broker and a direct lender. A

mortgage broker may represent several different lenders and serves as the liaison between

you and the lender. Working with a direct lender simplifies the loan process while eliminating

some of the additional fees associated with a broker.

5)The lowest rate may not be the best option. Rate is only one component to

consider. You should also look at the advantages of lowering your monthly payments, cashing

out, increasing your tax benefits or decreasing the term of your mortgage.

6)Some of the costs associated with refinancing are tax deductible. Ask your

financial advisor or tax professional for more details.

7)If you’re a veteran, you won’t need down payment money. Unlike FHA loans, VA

loans typically do not require a down payment or private mortgage insurance (PMI). They do

require owner occupancy and, of course, VA eligibility.

PAGE 4


In some cases, ARMs have lower interest rates. According to the chief economist for the Mortgage Bankers Association of America, the average life of a mortgage is just 3-5 years. Yet, 83% of borrowers get loans that guarantee a fixed rate for 15 years or more.

Why should I consider an adjustable rate mortgage (ARM)?

If you have a question, feel free to pick up the phone and call me. I’m here to make sure you understand the process and clarify any concerns you

may have. However, here are some answers to frequently asked questions that you may be thinking about:

Guidelines vary from one loan to another, but to qualify you must have equity in your home, have a stable income and meet the minimum credit requirements.

What do I need to qualify for a refinance?

The total cost for refinancing your first mortgage depends on your interest rate, the number of points, and other costs required to obtain the loan. I’ll review this with you when we go over your financial goals so you’ll have a clear idea of what to expect.

What will it cost to refinance my loan?

An appraiser looks at your home and compares it to other homes that have sold in your area recently. Factors that are taken into consideration include the structure of your home, its location and proximity to neighborhood amenities, and its overall appeal inside and out.

How does an appraiser determine what my home is worth?

I’ll sit down with you and review your financial goals and objectives. Then, we’ll “crunch the numbers” to see which option best suits your needs and comfortably works within your budget.

How do I decide if a 15-year mortgage is better for me than a 30-year mortgage?

From personal to financial information, you’ll need to gather several documents before getting started. It’s best to have the necessary paperwork gathered together before you sit down to meet with me. This way, everything you need will be in front of you and easy to access. There’s a handy document checklist on Page 12 to help you along the way.

I’m ready to apply. What should I expect?

REFINANCING

FAQs

The time it takes between submitting your loan application to sitting at the closing table usually averages 2-3 weeks.

How long does it take for you to process my loan request?

PAGE 5

RESIDENTIAL FINANCE

“Handling of all aspects of my loan was impeccable. I have had to refinance many times in the past so I ought to know! I had spoken to many loan officers all denying any hope of refinancing … Thanks to my loan officer for his good work!”— Darlyne D., Dublin, CA

“Residential Finance was wonderful, warm and professional. I was denied twice by other banks and they thought outside of the box and were able to approve us for a refinance on our home and save a lot of money and jumpstarting us out of debt. Thank you so very much, this has changed our lives tremendously!”— Brian D., Buchanan, MI

“Residential Finance more than exceeded my expectations. I was somewhat reluctant to apply for a refinance, but after receiving a card in the mail from Residential Finance I made a phone call and was connected. From the 1st call they gave me confidence in our situation and were sure they could help. Things had changed drastically for my wife and I over the last couple of years, and that’s exactly what we needed, a little help. I never once felt like just another number, and finally someone was there for us and our unique situation. I feel that thanks to Residential Finance that we are now in a much better financial position. Thank you Residential Finance.”— Peter R., Hadley, NY

Award Winning

CUSTOMER FEEDBACK

In Their Own Words

PAGE 6


BENEFITS EXAMPLE

Monthly Savings

HOW DOES REFINANCING SAVE ME MONEY?

Whether you’re changing the terms of your existing loan or lowering your interest rate, refinancing

can save you hundreds of dollars a month – that’s thousands of dollars per year.

Take a look at the example below and discover what a difference refinancing can make to your

financial future.

DEBT TYPE

Mortgage

Car Loan

Credit Card

Credit Card

Credit Card

Total Monthly Debt

Monthly Savings

Annual Savings

CURRENT

$1,265.00

$ 488.00

$ 159.00

$ 128.00

$ 95.00

$2,135.00

0

0

REFINANCED

$1,525.00

$0

$0

$0

$0

$1,525.00

$610.00

$7,320.00Sample information only.

Helpful Tip: Every cent counts! Did you know that by paying as little as an extra $90

per month on a $200,000 loan (at 4.5%), you can reduce your term by 4.5+ years (that’s 25.49 years

instead of 30)?

PAGE 7

RESIDENTIAL FINANCE

RESOURCE

Debt Sheet

_____________

_____________

_____________

_____________

_____________

_____________

_____________

_____________

TOTAL:

$_________

$_________

$_________

$_________

$_________

$_________

$_________

$_________

$_________

$_________

$_________

$_________

$_________

$_________

$_________

$_________

$_________

$_________

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

No

No

No

No

No

Creditor Total Owed Monthly Payment Pay Off

Sample Card 2563.00 152.00 X

ORGANIZE YOUR DEBT

Here is a helpful worksheet designed to assist you in outlining your current debt(s) and what you’d like to pay off.

Have a question? Don’t hesitate to call me and we can review this together.

PAGE 8


RESOURCE

My New Loan Worksheet

$_________

$_________

$_________

$_________

$_________

$_________

$_________

$_________

$_________

$_________

$_________

$_________

$_________

$_________

$_________

$_________

$_________

$_________

Option 1:

Option 2:

Option 3:

_________

_________

_________

$ ________

$ ________

$ ________

Debt Current New

WHICH OPTION IS BEST FOR ME?

Here’s a simple worksheet we can review together. Fill in the blanks below. Then, once you see how much you’ll save with each

option, you’ll be better equipped to select the loan program that’s best suited for you.

PAGE 9

RESIDENTIAL FINANCE

RESOURCE

Documents Worksheet

ORGANIZE YOUR DOCUMENTATION

There are a variety of documents – personal & financial – that you’ll need to compile. To help you prepare and

ensure that the process flows smoothly, here’s a checklist of the items you’ll need:

W2s: For each job you’ve held over the last 2 years

1099s: For the last 2 years (Social Security, pension, etc.)

Personal and business tax returns: For the last 2 years (all pages and schedules). Be sure to sign page 2 of Form 1040.

Award letter: Most recent (Social Security, pension, etc.)

Pay stubs: For the last 30 days

Bank statements: For the last 2 months (all pages)

Brokerage statements: Most recent (all pages)

Driver's license: An enlarged copy for borrower and co-borrower

Mortage statements: For all loans

Declarations page:Of your homeowners insurance

________________________________

________________________________

________________________________

________________________________

________________________________

________________________________

________________________________

KEY DOCUMENTS:(Required for every application)

ADDITIONAL DOCUMENTS:(Required for some situations only)

PAGE 10


RESOURCE

My Goals Worksheet

WHAT AM I DREAMING ABOUT?

Once you’ve refinanced your loan, you’ll be saving money. So, what would you like to do with those savings?

Are you ready to take that long-awaited vacation, remodel your kitchen, or send your kids to college? Write

down your goals below.

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

HOME

TRAVEL

EDUCATION

OTHER

PAGE 11

RESIDENTIAL FINANCE

Disclosure

Disclose everything at the beginning. Being up front from the start ensures that your loan gets processed as quickly and smoothly as possible.

2

Pre-Approval

You can do this over the phone or in person with me. I’ll ask you questions that will help me determine how much you may borrow.

Your pre-approval

letter helps expedite

the loan process

1

Appraisal

A professional appraiser will visit your home, compare it to other home sales in your area, and determine its market value.

3

Refinancing your home

doesn’t have to be

stressful and confusing.

To help you understand

the process and feel

comfortable with the

decision you make, here’s

a list of the 7 steps to

make your experience

hassle-free:

7 EASY STEPS Start to Finish

SMART CHART

The Loan Process

PAGE 12


Underwriting

An underwriter is the person responsible for comparing your documents with the guidelines of the loan you wish to obtain, and determining that all conditions are being favorably met.

5

Review and Rate Lock

By now, all your documents should be submitted, so when the appraisal comes in we can review everything, lock in your loan rate, and submit a complete package to the underwriter.

4

Closing

Once the paperwork is complete and your loan is approved, I’ll communicate with the closing agent to ensure the documents are recorded and funds are disbursed properly.

7

Quality Assurance

After reviewing your loan package, the underwriter may ask for additional or updated documents such as pay stubs or re-verification of employment.

6

SMART CHART

The Loan Process

PAGE 13

RESIDENTIAL FINANCE

Step 1Applying for your loanYou can do the loan pre-approval process over the phone, online or in person with me. First, we’ll review your financial goals and objectives. Then, to help pre-qualify you, I’ll ask for information about employment, earnings, savings, etc. You’ll be asked to provide documentation such as W-2s, recent pay stubs, income tax returns. And, I’ll check your credit report. All your information is kept confidential.

I’ll use this information to see if you qualify for a mortgage and determine which loan options best suit your financial objectives.

Be sure your paperwork is correct, complete and legible. Missing or incorrect information may delay the loan process.

Your Tasks:

Apply: Give us a clear picture of all financial goals you would like accomplished.

Get Prepared: Gather your W-2 forms, pay stubs, phone numbers for your human resources department, contact info for insurance agent, your property tax bill. More information is always better than less.

Questions: Ask any and all questions you would like answered, if we don't know the answer right away we will find it.

Don’t open or close any new credit accounts in the months prior to applying for your refinance, this can effect your credit rating.

Do tell me, or ask me, about anything that may affect

your loan.

Our Tasks:

Listen: We want to know all about your goals and objectives and how it will change your life for the better once accomplished.

The Details: We must take time to cover your full application and ensure we have the most up-to-date and accurate information for your situation

Review Credit: We will be taking a look at your credit and discussing it with you. Let's take time to review it to ensure the credit bureau has accurate info.

Timeline: During this step we will go over all the steps in this process and estimating exactly when it will be complete.

Do's and Don'ts

PAGE 14


Your Tasks:

Phone appointment: Ask any questions you may have. We want you to have a clear understanding of all the paperwork your signing so let's cover everything.

Return documents: The documents we covered in step one should be returned with your loan application papers.

Appraisal: Let us know of a good time and day for the inspection of your property.

Step 2Disclosure (Signing)Disclose everything at the beginning. Being up front from the start ensures that your loan gets processed quickly and as smoothly as possible.

You’ll receive a Truth-in-Lending Disclosure statement that outlines the total cost of your loan. This is an opportunity for you to ask questions to ensure you understand how much you’re going to pay for the loan program you wish to obtain.

The initial paperwork is not the finalization of your loan. It is used for compliance purposes as required by the government. If anything on the application is incorrect, such as the year your home was built or work phone number, just let us know and we will get it fixed prior to the final closing.

Don’t spend the money you have in the bank. Many mortgages are approved on the condition that you have a certain amount of money on reserve after closing.

Don't take on new debt. This can be tempting as your new loan will be giving you tremendous financial benefits. Just wait till it's closed and funded.

Don’t change jobs. Try not to make a career change until after the loan has closed, if possible. You want to demonstrate income stability.

Do's and Don'ts

Our Tasks:

Be available: Our most important duty in this step is to be ready and available to cover all paperwork with you and provide answers to any questions you may have.

Arrange appraisal: Our mortgage team will be coordinating with the appraisal company to set up your appraisal inspection.

Double-check: Once your income documents are received, we will be reviewing and updating all information to ensure your application is approvable.

Timeline: We will go into more detail on the full process, timelines and what we need from you.

PAGE 15

RESIDENTIAL FINANCE

Step 3Requesting An AppraisalResidential Finance Corporation retains the services of a professional appraiser. The appraiser is hired to visit your home and determine its value (known as the fair-market value).

This figure is calculated by reviewing such factors as:

• How your home compares to other local home sales.

• The condition of your home – inside and out.

• The size of your home.

• The location of your home.

• Your home's proximity to neighborhood amenties.

Do renovate: If you're planning to fix up a room or remodel the bathroom be sure to wait till the loan is complete to do so. This can effect your qualification.

Do provide your past appraisal: Have a copy of your last appraisal? If so, this may assist with your inspection. Provide a copy to your appraiser.

Do's and Don'ts

Be ready: The appraisal will take around 45 minutes to an hour. Please make sure you have set enough time in your schedule for the appraiser to do their full analysis.

Speak up: Let the appraiser know of any new additions or upgrades you've made since your last inspection. If you know of any recent or pending sales in the neighborhood be sure to mention it to the appraiser.

Finishing touches: We will be communicating with your tax assessor, insurance company and the credit bureaus to fine-tune your application and prepare it for processing.

Follow up: The appraisal management company and the loan officer will be discussing the expected timeline to receive your appraisal back. (Typically 3-4 days in most areas)

Branch Manager: The Branch Manager will be much more involved in reviewing the application for any additional items that may be needed.

Wait: There is a down period in the process as we await the final estimate, but we are prepped and ready to move forward once we get it back.

Your Tasks:

Our Tasks:

PAGE 16


Step 4Review and Rate LockBy now, all of your documents should be submitted. Once the appraisal comes in, we can review everything, lock in your loan rate and submit a complete package to the underwriter.

A rate lock is a guarantee to “lock in” the interest rate at which you will pay back your home loan. This protects you from rate fluctuations in the market during the mortgage review period. If mortgage rates climb after the rate lock is in place, you benefit by getting the lower interest rate once your loan is approved. However, should rates fall after the lock-in period, you may have to pay the higher rate.

Don’t panic. Even if the appraisal comes in less than your estimate, we have many programs that may still be able to help you out.

Do relax. You've done your part. Now allow us to take over and complete the loan process.

Do's and Don'ts

Your Tasks:

Lock: Locking in a loan rate can be completed at any stage after application, but if you have chosen to wait at this point we must firmly lock in the rate at this time.

Discussion and finalization: Now that the appraisal is complete we want to finalize any additional wants or needs that you would like accomplished.

Choose: Do a final review of all options and make the most advisable financial decision with my help.

Be available: We want to know all your questions, concerns, anything else we should be aware of.

Forward process: We do our best to outline the finalization of the processing of your file and give full transparency on how a mortgage application is completed.

Review credit: We will be taking a look at your credit and covering it with you. Let's take time to review it to ensure the credit bureau has accurate info.

Copy of the appraisal: During this time we will send you a copy of your appraisal report for your records and review.

Our Tasks:

PAGE 17

RESIDENTIAL FINANCE

Step 5Underwriting ConditionsAn underwriter is the person responsible for comparing your documents with the guidelines of the loan you’re applying for. He/she determines whether or not you’re meeting all the conditions favorably.

After the loan processor has compiled all of your paperwork, it is handed over to the underwriter. It’s the underwriter’s job to double -heck the processor’s work and compare your file to the guidelines of the loan program to ensure that everything is in order.

In some cases, the underwriter may approve your loan, but make it conditional upon you meeting additional criteria.

Be patient: During this step, both the loan originator and the borrower are eagerly awaiting the underwriting decision. It does take some time, but as long as the underwriter has all the information they need, it will go smoothly.

Make any and all payments: It's common for borrower's to think it's OK to stop making payments while in the final stages of the process.

Working with the Loan Processor: We will meet with the processor at the time of underwriting submission to get guidance as to what may be needed moving forward.

Title Work: At this point we will obtain a copy of your title report, review it and ensure it is accurate.

Mortgage Payoffs & Credit Bureau Updates: We will be obtaining a payoff statement on your mortgage and also work with the credit bureaus to ensure your credit report is fully updated and accurate.

Income Verification:At this time our processing staff will be reaching out to your employer, C.P.A., or government to verify your employment and income.

Don’t stop making your payments. Continue to make your mortgage payments until told otherwise.

Do continue to collect pertinent information. Most recent pay stubs may be needed, so keep updated information at the ready.

Do's and Don'ts

Our Tasks:

Your Tasks:

PAGE 18


Step 6Quality AssuranceAfter reviewing your loan package, the underwriter asks for updated documents, which you’ll need to submit at this time.

For instance, you may be asked to provide additional pay stubs or re-verification of employment. We’ll go over the conditions so you know exactly what is expected of you.

Final disclosure: At this point, there will be a final set of loan disclosures for your review and signatures. We will need these items returned for compliance purposes.

Prepare for settlement: We typically close the loan at your home, but we have alternative options available. Just let us know when and where to be.

Double-check the final documents: We will thoroughly review all the final documents for accuracy and review with you.

Communicate to involved parties: We will ensure that the parties involved are prepared for your closing.

Await the final "Clear to Close": Now that you've passed underwriting with flying colors, we are simply awaiting verification that all documents are compliant.

Schedule the closing: Once we have the "Clear to Close," we will call you and celebrate the great news. Then we verify the best time and location for settlement.

Don’t incur more debt, yet! Please remember to hold off on that new car, boat or credit card. Any new debts could result in additional delays to the loan process.

Do ask questions. We are available to go over everything in detail and answer any and all questions you may have.

Do's and Don'ts

Our Tasks:

Your Tasks:

PAGE 19

RESIDENTIAL FINANCE

Step 7ClosingThe conditions of the loan have been met. Your loan is approved by the underwriter and it proceeds to the closing table.

You’ll be asked to sign closing documents, which may be done at your home, our office, or at a location chosen by a notary or attorney in your area.

Once complete, I’ll communicate with the closing agent to ensure your documents are recorded and funds are disbursed properly. Approximately four days after the loan funds, you’ll receive a check(s) via overnight mail carrier.

Settlement: We will send a notary to your location and obtain final official signatures on your loan paperwork. Simply provide a copy of your driver's license to the notary, sign the final documents, and the process is done.

Performance review: After your loan has closed, you will receive a survey in the mail. Feedback is essential to us as we continually strive to improve our service. Please take a few minutes to let us know how we did.

Funding questions: On a purchase transaction, your loan will fund the same day as signing. On a refinance, funding is typically four business days after settlement due to federal compliance.

Closing questions: If you're at settlement or just finished up signing, we are ready and available to answer any questions you may have.

Copies of any documents: If you submitted any original documents, rest assured that we will return these documents to you now that the loan is complete.

Do celebrate! Your loan is now closed, it's time to celebrate and enjoy the benefits of your refinance.

Do refer me to friends and family. Our business is built on providing high-quality service and satisfaction. If we did an excellent job for you, we would be happy to assist any friends or family who may benefit from our loan products.

Do's and Don'tsOur Tasks:

Your Tasks:

PAGE 20


YOUR LOAN HAS CLOSED, BUT WE'RE STILL HERE FOR YOU

We want to be your banker—now and in the future. If you want a new analysis in six months, one year or five years from now, we will be here and ready to assist in every way possible. You will receive a letter from our Customer Service Manager in a few days that will cover FAQs along with specifics on your payment amount and where to send your new mortgage payments.

Helpful Tip: Keep your Customer Service letter in a safe and acccessible place. It is a great reference tool, and contains contact information for your Customer Service Manager, who will be happy to answer any concerns you may have.

MY LOAN IS CLOSED

What Happens Next?

PAGE 21

LOAN OFFICER

PROCESSOR

TITLE COMPANY

CLOSING AGENT

HOUSE INSPECTOR

OTHER

OTHER

OTHER

OTHER

_____________________________________________

____________________________________________

_____________________________________________

_____________________________________________

____________________________________________

____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

USE THIS WORKSHEET FOR QUICK REFERENCE

IMPORTANT

Telephone Numbers

SMART GUIDE TO REFINANCING REv: 2/13/13 ©

RESIDENTIAL FINANCE CORP (RFC) 1 EASTON OVAL, STE 400 COLUMBUS, OH 43219. NOT AFFILIATED WITH RESIDENTIAL FUNDING CORP. CONDUCTS BUSINESS AS RFC MORTGAGE I/L/T/N RESIDENTIAL FINANCE CORPORATION IN NY. NOT AN OFFER OF CREDIT OR COMMITMENT TO MAKE A LOAN; NOT AVAILABLE IN ALL AREAS; SUBJECT TO UNDERWRITING GUIDELINES. NMLS #1652; VA LENDER ID #2595540000; AK MORTGAGE BROKERS LICENSE#AK1652; AL #21483; AR #101062; AZ #BK-0905843; CA FINANCE LENDERS LAW LICENSE #6039726; CO MORTGAGE BROKER LICENSE #100029775 CHECK LICENSE STATUS AT WWW.DORA.STATE.CO.US/REAL-ESTATE/INDEX.HTM; CT #12900; DE CHP 22 LICENSED LENDER #011831; DC #NMLS1652; FL #MLD167; GA #19399; HI #HI-1652; IL #MB 0005562; IN DFI #16242; KY #MC82945; LA #1652; MD #11143; MA MORTGAGE LENDER #ML1652;ME SUPERVISED LENDER # SLM12522; MI 1ST & 2ND FL4201 & SR 0010569; MN #MN-MO-02049502; MS #4434/2009 LICENSED BY THE MS DEPT OF BANKING & CONSUMER FINANCE; NJ LICENSED BY NJ DEPT OF BANKING & INSURANCE NJ CORRESPONDENT MORTGAGE BANKER & SECONDARY MORTGAGE LOAN LICENSEE #9945825; NM #03691; NY LICENSED MORTGAGE BANKER-NYS BANKING DEPT #B500784; NC #L-139845; OH #MB802662.000; OR #ML-5063; PA LICENSED BY THE PA DEPT OF BANKING PA MORTGAGE LENDER LICENSE #22135; SC #MB-0508408; TN #4093; TX SML #45235 (2 GALLERIA TOWER 13455 NOEL RD STE 1000 DALLAS TX 75240); VA LICENSED BY VA STATE CORP COMMISSION MC 3003; UT DRE MTG ENTITY #8404312, WA CONSUMER LOAN COMPANY CL-1652 WA MASTER BUSINESS LICENSE #602403652; WI #21906BA.