Switching a mortgage to another bank requires refinancing your mortgage balance all over again with a new bank. You need to apply and be approved in order for the new bank to take over your mortgage. If you are past due with the current mortgage, the new bank will reject your loan application. Before you switch, check with several banks to get the lowest interest rate available as well as closing costs.
Call the bank of your choice and submit a credit application. The bank representative will ask you some personal information, including your date of birth, Social Security number and place of employment. With your permission, a representative will take a look at your credit report to make sure you meet the bank's credit guidelines. Bad credit or too much outstanding debt may cause the bank to reject your application. A debt-to-income ratio above 36 percent is cause for a lender to reject your application.
Review the costs with the bank representative. When you refinance your mortgage, you will incur closing costs, including an appraisal fee, title insurance, credit report and points. You can roll all of your costs into the new loan which will limit your out of pocket expenses by adding it to the monthly payment.
Sign the loan documents. When you have been approved, the bank will have you sign all of the documents. There will be a three-day rescission period before the loan is complete. This gives you three business days to change your mind and back out of the loan. Make sure you keep your paperwork, received from the bank, in a secure place.