How the Refinance Process Works, Step by Step
Refinancing can feel confusing if you haven’t done it in years—or ever. The good news: the basic steps are predictable, and a good lender will guide you through each one.
Here’s what usually happens when you start a refinance using the BuyRefiLeads network. Details vary by lender and state, but the overall flow is similar. For big-picture questions, you can also visit our Refinance My Home overview.
Step 1: Share Your Goals and Basic Info
You start by answering a few questions: your property address, current loan amount, estimated value, credit range, and what you want to accomplish (lower payment, shorter term, cash-out, etc.).
We use this information to connect you with licensed lenders in your state who work with your type of loan and have programs that fit your goals.
Step 2: Talk with a Licensed Loan Officer
A loan officer reviews your information and asks follow-up questions about income, debts, and future plans. This conversation helps them understand which programs make sense and whether a refinance is likely to benefit you.
If you’re ready to move forward, they’ll ask permission to pull your credit and gather documentation.
Step 3: Application and Documentation
You’ll complete a formal application and provide documents such as:
- Recent pay stubs or proof of income
- W-2s or tax returns (for self-employed borrowers)
- Bank statements and asset documents
- Homeowner’s insurance information
- A copy of your current mortgage statement
The lender uses this information to verify your ability to repay the loan and to match you with the best available program.
Step 4: Rate Quote, Options, and Disclosures
Once your information is reviewed, the lender can share rate options and estimated closing costs. You’ll receive disclosures that show how the new loan compares to your current one, so you can see savings, term, and total interest.
Take your time here. Ask questions. Make sure you understand how the new payment fits your budget and how long it takes to break even on fees.
Step 5: Appraisal and Underwriting
Many refinances still require a home appraisal, though some borrowers qualify for an appraisal waiver. At the same time, your file goes through underwriting, where the lender double-checks income, credit, and property details.
You may be asked for a few additional documents or clarifications. This is normal.
Step 6: Clear to Close and Signing
Once underwriting is satisfied, you’ll receive a “clear to close” and a final set of numbers. At closing, you sign the new loan documents—often with a mobile notary at your home or workplace.
After any required waiting period, your old loan is paid off and the new one takes its place. Your first payment date will be listed in the closing package.
Where BuyRefiLeads Helps
We don’t replace your lender—we help you start with the right one. By connecting you with licensed teams in your city and state, we make it easier to start the refi process with someone who understands local rules, property types, and programs that fit homeowners like you.
If you’re ready to see how this process would look in your situation, use the form on this site to take the first step. For quick answers to common questions, check out our Homeowner Refinance FAQs.