Homeowner

Documents Needed To Refinance

Knowing the documents needed to refinance your mortgage before you move forward with your loan application will allow for a better overall experience.

A lower interest rate, a shorter term, or possibly cash-out funds to improve your home are all benefits of refinancing your mortgage. No matter the benefit, you should know the documents needed to refinance a mortgage beforehand.

Below, we list the documents needed to refinance your home. Not every situation is the same; the list below is a guide. An underwriter may request additional documentation based on your specific situation.

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Three Categories

I will break down the documents needed to refinance your current mortgage into three categories: W-2 Employee, Self-Employed, and Retired. The reason is that each group must provide a slightly different documentation set.

Quickly jump to the section that matters to you;

Generally speaking, refinances usually take 3-4 weeks from completing an application to signing loan documents with a notary. When a second mortgage is subordinated, the time frame might be closer to 4-6 weeks.

Gathering your documentation before moving forward is a good idea to ensure a fast mortgage process. The documents needed to refinance your home include some essential items you can probably find in minutes.

W-2 Employee Refinance Documentation

If you are a W-2 Employee, here is an essential list of documentation you’ll need to refinance your current mortgage:

  • Most recent W-2 you received (possibly the most recent two).
  • Paystubs that cover a month’s period of time.
  • Contact information for your homeowner’s insurance agent.
  • Copy of your monthly statement for your current mortgage. If you have a second mortgage, you’ll need to provide a statement for that as well.
  • Contact information for your HOA (if you have one).
  • See additional income documentation that may be required.

Self-Employed Refinance Documentation

If you are Self-Employed, here is a list of refinance documentation you’ll need to provide.

  • Your most recent tax return, personal and business, with all scheduled (federal only). You may have to provide two years.
  • A P&L statement for the current year, possibly one for the prior year as well (depending on when you file your returns).
  • Contact information for your insurance agent.
  • Copy of your monthly statement for your current mortgage. If you have a second mortgage, you’ll need to provide a statement for that as well.
  • Contact information for your HOA (if you have one).
  • See additional income documentation that may be required.

Retired Refinance Documentation

If you are retired and want to refinance your mortgage, here is a list of refinance documents you’ll need to provide.

  • If you receive Social Security income, then proof of benefit and possibly proof of receipt (bank statement the money is deposited into).
  • If you receive pension income, you’ll need documents similar to SS income, proof of benefit, and possibly proof of receipt.
  • If you own rental property, then the two most recent years of tax returns.
  • Interest, dividend, and capital gains income: This requires two years of tax returns and proof that the current income level will continue for at least three years.
  • Asset Depletion is another way to qualify. For Asset Depletion, you’ll need two years of tax returns and proof of liquidation, and the “income” will continue for at least three years.
  • Contact information for your HOA (if you have one).
  • See additional income documentation that may be required.

Additional documentation may be required

Here are some additional items you may be required to provide to the loan officer.

  • Liquid assets: Some mortgage loans require the borrower to have liquid asset reserves, and if so, you’ll need to provide the most recent two statements (all pages). In some cases, a mortgage company can do an asset verification, which means the mortgage lender will independently verify your liquid assets.1
  • Tax returns: If you own rental property, have a side gig, or if you receive partnership income, you may have to provide your most recent two years of tax returns.
  • Subordination: If you have a second mortgage and want to subordinate, you’ll have to provide a copy of the Note from when you secured the loan.
  • Legal Separation or Divorce: If you are legally separated or divorced, you’ll need to provide your separation or final divorce documentation.2
  • Bankruptcy: If you’ve filed for Bankruptcy in the last seven years, you may have to provide Bankruptcy documentation to the underwriter.

If you think you might need to provide one or more of these documents, discuss that with the loan officer as you complete the loan application. This way, you can provide the document(s) with your core set of documents. This will help with efficiency and reduce the time it takes to get your loan application approved.

Rental properties

A quick note about rental properties. If you own rental properties, please be prepared to provide the following:

  • Lease agreement(s)
  • Mortgage statements and insurance information for each property.

Just like other documentation, it’s important to provide the entire document when turning in a lease agreement. Also, the lease agreement should be fully executed, meaning both you and the renter have signed and dated the document.

If there have been any amendments, please provide those amendments as well.

Bank statement mortgage refinance documentation

If you are applying for the specialized bank statement mortgage refinance program, you’ll need to collect the following documents before moving forward with your loan application.

  • Provide twelve or twenty-four months of your most recent bank statements, including all pages and the front and back of each page.
  • Contact information for your homeowner’s insurance agent.
  • Copy of your monthly statement for your current mortgage. If you have a second mortgage, you’ll need to provide a statement for that as well.
  • Contact information for your HOA (if you have one).
  • See additional income documentation that may be required.

Bank statement mortgages can be a bit tricky, so you’ll need to talk with your loan officer to get your specific list of documents needed before your file goes to underwriting.

FHA Streamline Refinance documentation

If you have an FHA home loan currently and want to refinance into a new FHA home loan, you’re in luck!

The FHA Streamline Refinance loan program is one of the best in the industry. There is no income documentation and no appraisal.3 It’s super fast and super easy!

VA Streamline refinance documentation

Like the FHA Streamline Refinance, the VA home loan program has its own streamline refinance.

The VA Streamline refinance documentation needed is as simple as the FHA program. There are no income documentation, appraisal, or credit check requirements.4 You’ll complete the VA Streamline refinance program in a matter of weeks.

Do You have a question or need a quote?

Contact Kevin

Low rates, fast closings, and exceptional service.

Bottom line on refinance documentation

Whether you are refinancing under a conforming home loan program or a streamline refinance program, it’s important to discuss the refinance documentation requirements with your Loan Officer before you move forward with your Loan Application.

Most mortgage lenders allow you to upload your refinance documentation to a secure server, email, or fax it.

Sources:

  1. What are Verification of Deposit and Income Forms? – Accusystem.com
  2. Why Would Mortgage Lenders Need Divorce Decree? Lawexpresion.com
  3. Section C. Streamline Refinances – HUD.gov
  4. VA IRRRL rates and guidelines: VA Streamline Refi 2023 – Themortgagereports.com
Loan Officer Kevin O'Connor

About The Author

Loan Officer Kevin O'Connor has over 17 years of experience as a Mortgage Loan Originator and is a trusted resource for mortgage education and information. He's the content creator of K.O. Home Loan Solutions and is licensed by the state of California and the Nationwide Mortgage Licensing System. He has a top rating with the Better Business Bureau, Google, Yelp, and Zillow. You can contact him at 1-800-550-5538. CA DRE #01499872 / NMLS #247447