Closing Attorney

• In some states, the title insurance company closes a mortgage for the lender. However, in the state of Georgia, a real estate attorney must be hired by the lender to close the mortgage transaction. Typically, this same attorney arranges the title insurance through a third-party company. In other states, however, the title insurance company would both issue the title insurance and close the mortgage transaction.
  
  

Needed Documentation

• For most mortgage loan refinance types in Georgia, a borrower provides the lender with a copy of her social security card, driver's license, three months of pay stubs, three months of bank statements and two years of tax returns. Additional documentation needed may include divorce decrees, social security income verification, and military records.
  
  

Debt to Income

• One of the most important ratios used by lenders in Georgia to determine a borrower's ability to repay the debt is debt-to-income. This is the amount of a borrower's monthly debt payments divided into his monthly income. If this ratio is high, typically above 45 percent, the borrower may have trouble repaying the debt.
  
  

Lender Approval

• Lender approval is based upon the borrower's ability to repay the debt. Through the use of income documentation, as well as an analysis of the value of the property and a borrower's ability to repay the debt, the lender can make an educated decision upon the viability of the mortgage. If he feels the mortgage refinance is viable and will be paid in full by the borrower at the end of its term, he approves the mortgage refinance.