David Hochberg Helps Homeowners Learn About Refinancing And Refinance Options
Northbrook, Illinois based mortgage specialist David Hochberg is reaching out to the community to share information about refinancing and how it works. Hochberg has established himself as a mortgage specialist for veterans in the state of Illinois and the surrounding areas.
Hochberg says, “Your home is an investment, and if you are a first time home owner, you should know that you can leverage that investment by refinancing your home. Refinancing is the process of replacing an existing debt obligation with another debt obligation under different terms. There are several reasons why you may want to do this: for instance, getting cash from your home, lowering your payment and reducing your payment term.”
Refinances can be used to remove another person from the debt obligation, which can happen in cases of divorces. Similarly, someone can be added to the debt obligation as well. While the refinancing process is often not quite as complicated as the home buying process, it does include a fair number of similarities. There is no set timeline for the procedure either, though it can typically take anywhere from 30 to 45 days.
Anyone who is interested in refinancing their property will start off by applying to refinance. At this step, lenders will ask for documents pertinent to the process (such as pay stubs, bank statements and others) and look at the applicant’s income, assets, debt and credit score to determine whether they meet the requirements to refinance and can pay back the money before the end of the determined period. Lenders will also ask for the spouse’s documents if the applicant is married.
Hochberg says, “Just to make it clear, there is no need for you to refinance with your current lender. You can always choose someone new, who will take care of matters with your previous lender themselves. Refinancing your home is a rather significant process, so you should not be afraid to shop around and compare each lender’s current rates, availability and client satisfaction scores before you actually pick someone.
Once an application has been approved, applicants will be given the option to lock their interest rate so it does not change. Alternatively, they can choose to not lock the interest rate, which can either allow them to get a lower rate or put them at the risk of getting a higher one. Hochberg advises that if a homeowner is happy with rates at the time they are applying, it is generally a good idea to lock down the rate.
Following that, lenders will begin the underwriting process, verifying details of the property, (such as when it was purchased). This will also include a home appraisal. If the property’s value is equal to or higher than the amount the homeowner wants to refinance, it means that the underwriting is complete. In cases where a homeowner is refinancing to take cash out, the value of the home will determine how much money they can get. If they are trying to reduce their mortgage payment, then the value can impact whether they have enough equity to get rid of private insurance or be eligible for other options.
In cases where the estimate comes back low, Hochberg says homeowners can either cancel the application or reduce the money they want to get through refinancing. Alternatively, they can do a cash-in refinance, where they bring cash to the table in order to get the terms under their current deal.
After everything is done, all that will be left is to finalize the procedure. Lenders will send a Closing Disclosure to homeowners, which will contain all the relevant numbers for the refinancing. At closing, the details will be finalized and the documents will be signed. Any closing costs will be paid at this point, and if the lender owes the homeowner money, these will be paid after closing.
Hochberg says, “Refinancing your home is simple enough, but if there is anything you don’t understand or wish to learn more about, feel free to get in touch with me and I would be glad to help. We also provide home loans for veterans who need it, along with a number of other services.”
Interested parties can get in touch with David Hochberg directly via phone or email. David Hochberg also maintains a presence on social media platforms like Facebook and Instagram where he shares his observations on the industry and communicates with his clients.
For more information about David Hochberg, contact the company here:
3100 Dundee Rd Suite 906
Northbrook, Illinois 60062