Terms

• Before refinancing, check the terms of the new loan versus your existing loan. Interest rates are important, but so are the length of the loan, penalties for prepayment and future refinancing restrictions. The cost of the financing is also a determining factor. How much is the lender charging you to process your loan? Are points and fees attached to the financing, and are these fees negotiable?
  
  Lenders specializing in refinancing often advertise no-cost loans, but the fees are attached to the principal and rolled into your refinanced loan. Look for the lowest loan-origination fees or ask if you can prepay those fees so they are not added to your loan.
  
  

Paperwork

• Ensure fast loan approval by having all your paperwork in order before you visit a lender. Documentation required typically include the past two months' bank statements, one month of pay stubs for each borrower, a copy of your homeowner's insurance policy and current loan information, including lender and account number.
  
  It is also important to know what's in your credit report before applying for refinancing. Request a copy through the major credit bureaus or online and review it for discrepancies among your creditors, amounts owed and your payment history. If you are refinancing an FHA or VA loan and the new loan results in lower payments, credit issues are rarely a problem. If there are any errors, write to the credit bureaus before you apply for your home refinance to guarantee you get the best rates.
  
  

Appraisal

• There are ways to increase the value of your home without constructing major home improvements. Make sure your home is white-glove clean on the day of the appraisal. A dirty home suggests that it hasn't been maintained and could subconsciously affect the appraiser. Pay particular attention to the carpets, the draperies and kitchen countertops. Likewise, clear away clutter from the halls and the garage. Walk with the appraiser and point out any improvements you have made, such as new window treatments or recently installed hardscape.