7 Steps to SELFi
SELFi is a new way to refinance. Instead of hiring sales agents to persuade you to use our service, we give you the tools to make decisions regarding your refinance. This significantly decreases our cost per loan and we pass the savings to you.
The result? SELFi saves you an extra $53,629 over the life of the loan on your refinance.
Check your rate. No login required.
To start, click Check your Rate on the homepage, or here. To provide you with an accurate quote, all that is required is your basic mortgage criteria. No email or phone number is required.
Our algorithm then matches your criteria with the wholesale lender offering the best pricing for each specific interest rate presented. Lenders fiercely compete for your loan by submitting us their wholesale interest rates in real-time. Wholesale rates are much lower than retail rates, which are the rates offered directly to consumers.
For our DIY Refi program, SELFi is paid a commission from the lender of .625%. This is 1/4 the industry average. We then pass the savings to you in the form of lower rates.
Select your rate
Review your customized quote and choose the interest rate that best fits your goals by clicking Apply. Here’s a quick summary on how to best decide which interest rate to select:
- Credits: Credits are dollars given back to you in the closing process which can be applied towards closing costs such as title fees. Take enough credits, and all closing costs can be covered.
- Points: The flip side to taking credits, is paying points. Essentially, you are paying more in closing costs to get a lower rate.
Which is better for you? It depends on how long you anticipate having your mortgage. The longer you have the mortgage, the more beneficial it is to pay points for a lower interest rate. If you think you may sell or refinance again in the near future, then you are better off choosing a rate providing credits.
For more guidance on defining your goals, see our DIY Refi guide.
Apply Online. Quickly and Securely.
After clicking apply on your desired rate you will be directed to our online application. We have designed the application to be intuitive and fast.
Locking in your rate… or not.
Once you’ve completed the application, you’ll be able to request a rate lock. Another advantage of SELFi is you have the option to pre-lock. Pre-locking means you are locking in your rate before e-signing initial disclosures. This gives you time to complete your refinance with peace of mind knowing that your interest rate and pricing is secured even if the market changes.
Even if you choose to lock, you can still change your rate at a later time. By choosing to lock, it means your are locking at today’s pricing.
Most of the time, we lock for 30 days. If you have a second mortgage that is not being paid off, we may advise locking for 45 or 60 days to accommodate for the subordination.
Once you lock your rate, time is of the essence to close within your lock period and avoid a lock extension fee.
Review and E-sign Initial Disclosures
After you apply, you will receive an email with initial disclosures from the lender offering the lowest wholesale rate. These are disclosures such as the Loan Estimate. Disclosures are usually provided within 24 hours of applying and no later than 72 hours.
If everything looks good, e-sign the initial disclosures. There is no penalty whatsoever if you decide to back-out after reviewing initial disclosures.
Our DIY Refi Guide provides guidance on how to read your Loan Estimate.
Processing your Loan
Well done – the hard part is over (wasn’t too hard, was it?).
After you e-sign initial disclosures, you loan will be assigned to an experienced processor. The processor’s job is to keep you up-to-date with your application and collect the documents required for approval.
For your convenience, you can upload your documents directly on our website here. Or you can attach in an email to your processor. After the processor has received your documents your file will be submitted to underwriting. An underwriter makes a credit decision on your application.
Appraisal: After your loan is approved, an appraisal must be ordered so the lender can determine the value of your home. SELFi will exhaust every avenue to obtain an appraisal waiver, but most refinances require an appraisal.
The cost of the appraisal is around $550 and is paid by you by credit card. We will handle the ordering of the appraisal. One advantage with SELFi is that your loan is underwritten before paying for the appraisal. This way you know where you stand prior to paying anything out-of-pocket. If you’re confident you will be approved, we can order your appraisal before underwriting to expedite the loan process.
Your home must in a habitable condition and up to code which requires smoke and carbon monoxide detectors installed.
Once your appraisal is received, your loan will be submitted back to underwriting for final review. If all documents have been received, the underwriter will clear your loan to close.
Close and Fund
Once all lender requirements are met your loan will be Cleared to Close. Closing is the process of signing the final loan documents with the notary. We will schedule the closing directly with you. The notary accommodates to your schedule and can meet at your preferred time and location.
After you sign the closing documents, the notary will send the final documents to the lender. After three business days, the lender will wire the funds to the escrow officer. The escrow officer will then disburse your funds accordingly and record your mortgage with the county. Your existing loan will be paid in-full and your new loan has taken its place. Your refinance is complete.
View our DIY Refi guide about what happens after your loan closes and “skipping” payments.