How Long Does It Take to Refinance a Home?

No matter if you want to refinance your mortgage for a lower rate or take out cash to pay down debt, you probably want to close your refinance as quickly as possible.

How long does it take to refinance a home? Let’s take a look at how long it might take to close your mortgage loan, as well as compare some of the best lenders to refinance a mortgage. 

Average Refinance Timeline at a Glance

How the Refinance Process Works

The refinance process is similar to the process of your original home loan. Let’s take a look at each of the steps involved in the refinance process and what happens at each step.  

Step 1: Select a Mortgage Refinance Lender

There’s no rule that says you need to refinance with your original mortgage lender. You might be able to take advantage of a lower interest rate or a better customer service team by refinancing with a new lender.

Take some time to explore your refinance options before you apply. Research some of the best refinance mortgage companies available in your state, and compare interest rates and credit requirements from each option.

Step 2: Complete a Loan Application

Thanks to the rise in popularity of online mortgages, most lenders no longer require you to visit a physical bank or branch to fill out your refinance application. Even lenders with physical locations have streamlined the refinance process.

If you apply for a refinance through Rocket Mortgage® by Quicken Loans®, for example, you can apply for a refinance on your smartphone or tablet.

When you apply for a refinance, your lender will usually ask you to submit some financial information. Your lender will typically ask you to provide at least the following:

• Your last 2 paystubs
• Your last 2 W-2s
• Your last 2 months of bank statements

If you’re self-employed, your lender might ask you for more documentation that proves your income like your last tax return. Having this documentation on-hand before you apply for a new loan can speed up the refinancing process. 

Step 3: Receive a Home Appraisal

After you apply for a refinance, your lender will return a decision to you with a loan estimate. Your loan estimate tells you about the costs and fees associated with your new loan. Most online lenders return a loan estimate quickly after you submit an application.

From here, your loan enters the underwriting stage. During this stage, your lender will order a new home appraisal if your loan requires it. Not every refinance requires an appraisal.

For example, if you’re going with an FHA or VA Streamline, you won’t need to wait for an appraiser to visit your property. However, for most types of rate or term refinances and all cash-out refinances, you’ll need to get a new appraisal.

The refinance appraisal process is almost identical to the appraisal process you went through when you bought your home. The only major difference is that now you may attend the appraisal as a homeowner. We’ll go over a few ways you can improve your appraisal results in a later section. 

Step 4: Wait During Loan Underwriting

The underwriting process usually takes longer than any other step. During underwriting, your lender uses a fine-toothed comb to look through your finances to ensure that you’ll be able to afford your new loan payment. Your underwriter also looks at your income, assets, debt and credit, as well as the results of your home appraisal in relation to the amount of money you want to borrow.

Most underwriting closes in 5 to 8 business days. However, if you have a more complicated financial situation, your lender might take up to 3 weeks to finish underwriting your loan. When your underwriting is complete, your lender will get in-touch with you to schedule the final steps of your refinance. 

Step 5: Review Your Closing Disclosure

When your lender finishes underwriting your loan, they’ll issue you a Closing Disclosure. Your Closing Disclosure is a final tally of the fees and costs you’ll need to pay at closing. This document also includes information on your new loan term, monthly payment, APR and more.

Lenders are legally required to give you at least 3 days to review your Closing Disclosure before they can finalize your loan. Take a look at your disclosure and compare it with your loan estimate. If the estimates on your Closing Disclosure and your Loan Estimate are very different, contact your lender to ask why. If everything checks out, tell your lender that you’ve received the disclosure and that they may schedule your closing meeting. 

Step 6: Attend a Closing Meeting

Closing a refinance is easier than closing on a mortgage loan. Since you own your home, you won’t need to deal with any real estate agents or sellers. When you attend your closing, bring these items:

• Some form of government-issued photo ID (a driver’s license, passport or military ID)
• Your Closing Disclosure
• A cashier’s check to cover your closing costs or proof that you’ve already paid your closing costs online
• A list of key contacts, like your agent or refinance officer, in case you have any questions later

Most closing meetings for refinances take about 30 minutes. You should feel free to take as long as you need if you have any last-minute questions about what you’re signing. 

Streamline Refinance: How to Speed up Your Home Refinancing Process

There are a few steps you can take to speed up your refinance process:

Attend Your Refinance Appraisal

A low home appraisal can throw a serious kink in your refinance plans. As a homeowner, you’re free to attend your refinance appraisal and help your appraiser get an accurate picture of your home.

Begin by ensuring that your home is clean before your appraiser arrives. Though the cleanliness of your home won’t play into your appraisal value, a clean home makes it easier for your appraiser to see that your home has been well-maintained.

If you’ve made any permanent improvements to your property like a new dishwasher or a paver patio, be sure to call your appraiser’s attention to them.

Understand Your Closing Costs

Though you don’t need a down payment when you refinance your home loan, you’ll need to pay for things like your appraisal and loan processing fees. Save up for closing costs before you apply for a refinance to avoid delays. As a general rule, you can expect to pay between 2% and 3% of your total loan balance.

Acknowledge Your Closing Disclosure

Your lender is legally required to give you at least 3 days to look over your Closing Disclosure before they schedule your closing meeting. If you forget to acknowledge that you’ve received your disclosure, your lender can’t schedule your meeting. Be sure to contact your lender and confirm that you’ve received your disclosure as soon as you get it.

Keep in Touch

Your lender might ask you for additional financial documents during the underwriting stage of your refinance. Respond to these requests as quickly as possible to keep your refinance on track.

If your lender goes silent, don’t be afraid to follow up with a representative. Lenders usually put a lower level of urgency on refinances when compared to new mortgage loans. 

Best Mortgage Lenders for Refinancing

Refinance the Right Way

Closing your refinance on-time is important — but you should also leave yourself with plenty of time to make sure that you’re receiving the best possible refinance. Review all of your loan paperwork before you sign, speak with a few competing mortgage lenders and track interest rates over a few months to make sure you aren’t overpaying for your loan. 

Frequently Asked Questions