Refinancing Tips · April 14, 2025
The Refinance Process Step-by-Step: What to Expect
Understanding the refinance process from application to closing helps you prepare for each stage and avoid common delays. Here is the complete timeline.
A refinance follows a predictable sequence of steps. Here is what to expect at each stage.
Step 1: Pre-Application Analysis (Week 0)
Before applying, your HMS loan officer runs a complete analysis: current loan terms, proposed new terms, break-even calculation, and comparison of total costs. This ensures refinancing actually makes sense before you commit to a hard credit pull.
Step 2: Application and Documentation (Day 1-5)
Formally submit your application. Provide all documentation (income, assets, identity). Your lender issues a Loan Estimate within 3 business days — review it carefully.
Step 3: Appraisal (Week 1-2)
For most refinances, an appraisal is required. The appraiser visits your property and delivers a report within 5-10 business days. Some programs (FHA Streamline, VA IRRRL) waive the appraisal.
A low appraisal can limit your LTV for cash-out refinances. If the appraisal is below expected, discuss options with your loan officer.
Step 4: Processing (Weeks 2-3)
Your complete file is submitted to the lender's processing team. They verify employment, confirm title is clear, and prepare your file for underwriting. Stay responsive to document requests.
Step 5: Underwriting (Weeks 3-4)
An underwriter reviews your complete file. Most refinances receive conditional approval. Respond to conditions immediately — delays here extend closing.
Step 6: Closing Disclosure (3 Days Before Closing)
You receive the Closing Disclosure showing final loan terms and costs. You have 3 business days to review before closing can proceed. Compare it to your original Loan Estimate.
Step 7: Closing
Sign the refinance documents. For primary residences, you have a 3-day right of rescission (you can cancel without penalty). After the rescission period, funds are disbursed and your new loan is active.
Total timeline: 21-45 days for a standard refinance. FHA Streamline and VA IRRRL can close faster.
HMS manages every step. Call 309-222-8286.