Refinancing can seem like a daunting process, especially if you’re not sure you sure do it in the first place! Under the right conditions, refinancing your home mortgage can be a great financial move depending on your goals.

Not only can you get a lower interest rate, you can switch from a 30-year mortgage to a 15-year mortgage. You may also be able to lower your monthly payment as well as build equity in your home faster. Also, you will be able to cash equity to pay off other debts. As you can see refinancing has benefits that can’t be beat!

We understand that everything from the paperwork involved to the credit verifications can be time-consuming not to mention confusing. Luckily, there are some steps you can take to make the refinancing process just a little bit easier!

Step 1: Decide whether or not you want to refinance. Before you make the decision to refinance or not, you should definitely weigh the pros and cons. Every financial situation is different, and even though rates are extremely low right now, it doesn’t mean that every homeowner should refinance. Even if the cons outweigh the pros right now, you can refinance later on down the road.

Step 2: Get your paperwork ready. You will be required to provide paperwork for verification of your bank accounts, income, employment, and other information. Your lender will be able to inform you of exactly what paperwork you will need. Be sure to bring money or checks in order to pay for a credit report, appraisal, etc.

Step 3: Get your credit together. Make sure you have copies of your most current credit report from the three major credit report companies: Equifax, Trans Union and Experian. Closely check the reports for any errors. You can have any mistakes corrected in time for refinancing if you begin this early on. Also, be sure to pay any balances down if possible, and pay any credit card bills on time.

Step 4: Choose your loan. There are many loan choices available to fit your particular financial needs. From adjustable-rate mortgages and government loans to fixed rate loans and jumbo loans, you are sure to find the right loan for you. There are many places to look for the best loan, including credit unions, your community bank, and a national mortgage company. You can shop for the lowest rates online or in a financial magazine. Or, you can hire a mortgage broker to look for the best loan with the best rates for you.

The Home Loan Advisor is a tool that was built to provide homeowners with insight into opportunities available in the current market, without having to shuffle through all of the clutter on the Internet. Not only does the Home Loan Advisor analyze your property, current market conditions, local market comps, and other variables in our proprietary algorithm, but we match you with potential lenders who have products that may help you and provide you with a sense of stability.

Refinancing also means that you need to know the value of your home. You can get a free home valuation report from Neighborhood IQ to find out your home’s worth to help you decide if you should refinance now.