-When considering refinancing, be sure to comparison shop, and then decide which company will afford you the best situation all around, including fees, type of loan program, and interest rate. When you do decide, provide your lender with all documents promptly. When you apply for the loan, ask which documentation is needed and when. When everything is in motion, keep abreast of all happenings; that means staying in touch with your loan officer.

-Be fully aware of all fees and charges. The Federal Truth in Lending Law requires that lenders disclose certain facts to you, such as the annual percentage rate or APR, which is a representation of the yearly cost of the loan. A written statement of the estimation of fees is called the Good Faith Estimate, and you should have it with you when you sign any loan documents.

-Make sure to lock in your rate. When you do finally secure the a desired rate, a verbal agreement with your lender will mean that the rate is "floating." To lock in a rate commitment, get it in writing. The written agreement is the lender's promise to hold your rate for the period of time it takes to process your loan.

-Avoid any surprises with your new loan: especially payment amounts. The payment types will vary according to the type of loan you procure. For instance, some lenders will require payments on the interest and the principal amount of the loan, while with other loan programs, such as the balloon, payments are made only on the principal. However, this will not reduce your borrowed amount, and the full amount is still required at the end of the loan term.

-Read everything carefully. Information is your best and most valuable tool when refinancing. Be sure to read everything thoroughly before signing at the closing. Most documents will be available beforehand, and reviewing them in advance will help you to be prepared.

• To learn about the application process, click <here>
• To learn how different mortgage programs might save you money, click <here>