- 1). Find a lender to work with for the refinance. For this process, you will need to check with lenders to find out if they offer any loan programs for those who are upside down on their mortgages. Some lenders offer the option of refinancing for more than your home is worth, but they are not common. Many lenders work with the Home Affordable Refinance Program. This is a government program that allows homeowners to refinance even if they need to borrow up to 125 percent of the value of their homes.
- 2). Apply for the loan with the lender that you choose. During the application process, you will have to fill out several forms that include personal information such as your name, Social Security number and income level.
- 3). Give the lender any supporting documentation. This could include pay stubs, bank statements and tax returns. When applying for the home affordable refinance program, you may need to provide some extra documentation such as a hardship letter or some other information to justify getting the loan.
- 4). Put up any cash that is required by the lender. If you use a lender that does not offer the Home Affordable Refinance Program, you may need to put up some cash to make up the difference. This way, the lender reduces its own risk.
- 5). Go to the closing with the lender. The closing could be held at the lender's office, a title company or in a real estate lawyer's office. At the closing, you will sign several documents and the old loan will be paid off.
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