3 steps to refinance your mortgage

Don't: Buy a big-ticket item or get another loan before closing on the refi

Avoid making any major financial moves until after the refinance is closed.

"Sometimes people will go out and make a major purchase, like a car, in anticipation of the monthly savings they are going to reap from their refinance," Becker says. "Unfortunately, this can sometimes raise your debt-to-income ratio to a level that would cause you to be denied the loan."

Less drastically, a big purchase "could lower your credit score to the point where you would have to pay more in fees or get a higher interest rate," Becker adds. "Wait until after the refinance is closed and funded to do anything that might change your credit profile."