Dealing with Mortgage Servicer Transfers

Your financial documentation can be broken down into four key categories:
Proof of Identity & Assets: Social Security cards, driver’s licenses, passports, and statements for all bank, investment, and retirement accounts.
Proof of Income & Employment: Recent pay stubs, W-2 forms from the past two years, and federal tax returns.
Proof of Funds for Down Payment & Closing Costs: Bank statements showing the accumulation of your down payment funds.
Debt & Liability Information: Statements for all existing loans (car, student, personal) and current credit card statements.

This depends entirely on your lender’s policy. Some lenders may allow multiple recasts, while others may limit you to just one over the life of the loan. You must inquire with your loan servicer about their specific rules.

In some cases, yes. You may be able to remove an escrow account if you have a conventional loan and have built up significant equity (often 20% or more), have a strong payment history, and make a formal request with your lender. However, for government-backed loans like FHA and USDA, an escrow account is typically required for the life of the loan. You should always check with your specific lender about their policies.

A cash-out refinance makes sense when you have a specific, valuable need for the funds, such as home renovations that increase your property’s value, consolidating high-interest debt (like credit cards), or funding a major investment. It’s crucial to have a disciplined plan for the cash and to understand that you are increasing your mortgage debt.