This is a part 2 of this article. For part 1 click here.
Step four of the refinance process is verification. This is where the refinance process can start to drag on and on. Again, if you performed steps one and two, it will make this process that much faster. The reason being is that most of the time (I emphasize the word most) this process gets dragged on because of the consumer. You see, in this step the finance company needs to verify information. Therefore, you must provide them with the information. Many companies are now using technology for some of the necessary verification but we still need some data that only you can provide. Therefore, the longer you delay getting the info into the hands of the finance company, the longer the process will be delayed.
With that said, sometimes the finance company can drag its feet and take a long time as well. This tends to happen when you’ve gone through the underwriting process with a lender, you do not qualify, and the person you are working with moves you to the back of the priority list of people to call. This is more of a symptom of a company with horrible customer service and should be a great hint to you never to do business with them again.
One key item you will need to know is the loan-payoff amount. For student loans, you can obtain this from your current lender. It is referred to as the ten-day payoff amount.
After verification, you will be told if you are approved or not. If you are approved, you will sign your documents. The finance company will then pay-off your existing loan and your new loan will begin. In some states there is a cancellation period. This means that after you sign the documents, the finance company has to provide you with a predetermined number of days to cancel in case you change your mind. Just to forewarn you, 99% of the time something on the final loan will change from the loan you were pre-approved with in step three. This happens due to the verification process and items you may have left off in your initial application. Good finance companies will under promise in step three and over deliver in step five.
We hope this article on the refinance process helped you. If you have any questions or would like us to write about a specific topic please contact us. As always, if you have refinance questions, most likely your friends do too. Please share this article with them.