5 Tips for Refinancing Your Mortgage
5 Tips for Refinancing Your Mortgage
Refinancing your mortgage is not always the easiest task and can be scary to do. What do you do? Where do you go? How do you know what moves to make? It can be a complicated process for those who do not understand the process. In this article, you will find five tips that will help you be smart during your refinancing process.
The first tip is to compare your options for types of loans. You will want to compare your FHA loans, or Federal Housing Administration, against your conventional loans. It can be enticing to go for the FHA loan because you do not need to put down as much to quality for an FHA loan; however, there are fees that get added to your costs and those have been on the rise this year and likely to continue in 2014. For a conventional loan, you will have to put down a bit more than FHA but you will most likely be able to manage it better. Get quotes for both and then do your comparisons!
The second tip is to make sure that you have good credit. The regulations for being accepted with credit are tight and they do not look like they will loosen up any time soon. When lenders look at your credit history, they like to see that your history has been spotless for at least the last year. Credit scores of 680 are good and if you have 720 or better, you are in an even better position.
The third tip is for those who have their homes "underwater." If you owe more on your home than what it is worth, then you can now go for a refinancing opportunity. In 2013, the Refinance Program changed things up and now even people who have homes that are underwater are able to refinance their homes. It can still be a bit difficult to find ta way to refinance a mortgage with an underwater home but it can be done. With HARP 2.0 options, it is possible. If your lender says no to you, then see if you can get them to say yes; if they hold to no, then try to get to another lender and try again.
The fourth tip is to leave your credit where it is if you are approved for a loan. Once you are approved for a mortgage, do not touch your credit, at least in a negative way. What do we mean? Do not open any new credit cards or credit lines of other kinds, do not go on a spending spree via credit cards, etc. If you are approved and then you do things to lower your credit, you can be rejected even at the last minute.
The final tip is to act quickly. Do not delay on responding to anything from your lender or broker. If they ask for something, get back to them ASAP. With all the requests they get and all the paperwork they have, if you delay, you can be putting your closing time in jeopardy.
If you are looking for a mortgage lender, hire TrueFi LLC - a financial services company, to get best mortgage rates (California mortgage rates, Colorado mortgage rates, and Virginia mortgage rates) then contact us! We are California mortgage lenders, Virginia mortgage lenders, and Colorado mortgage lenders. Let us know if you want to refinance a mortgage!
Refinancing your mortgage is not always the easiest task and can be scary to do. What do you do? Where do you go? How do you know what moves to make? It can be a complicated process for those who do not understand the process. In this article, you will find five tips that will help you be smart during your refinancing process.
The first tip is to compare your options for types of loans. You will want to compare your FHA loans, or Federal Housing Administration, against your conventional loans. It can be enticing to go for the FHA loan because you do not need to put down as much to quality for an FHA loan; however, there are fees that get added to your costs and those have been on the rise this year and likely to continue in 2014. For a conventional loan, you will have to put down a bit more than FHA but you will most likely be able to manage it better. Get quotes for both and then do your comparisons!
The second tip is to make sure that you have good credit. The regulations for being accepted with credit are tight and they do not look like they will loosen up any time soon. When lenders look at your credit history, they like to see that your history has been spotless for at least the last year. Credit scores of 680 are good and if you have 720 or better, you are in an even better position.
The third tip is for those who have their homes "underwater." If you owe more on your home than what it is worth, then you can now go for a refinancing opportunity. In 2013, the Refinance Program changed things up and now even people who have homes that are underwater are able to refinance their homes. It can still be a bit difficult to find ta way to refinance a mortgage with an underwater home but it can be done. With HARP 2.0 options, it is possible. If your lender says no to you, then see if you can get them to say yes; if they hold to no, then try to get to another lender and try again.
The fourth tip is to leave your credit where it is if you are approved for a loan. Once you are approved for a mortgage, do not touch your credit, at least in a negative way. What do we mean? Do not open any new credit cards or credit lines of other kinds, do not go on a spending spree via credit cards, etc. If you are approved and then you do things to lower your credit, you can be rejected even at the last minute.
The final tip is to act quickly. Do not delay on responding to anything from your lender or broker. If they ask for something, get back to them ASAP. With all the requests they get and all the paperwork they have, if you delay, you can be putting your closing time in jeopardy.
If you are looking for a mortgage lender, hire TrueFi LLC - a financial services company, to get best mortgage rates (California mortgage rates, Colorado mortgage rates, and Virginia mortgage rates) then contact us! We are California mortgage lenders, Virginia mortgage lenders, and Colorado mortgage lenders. Let us know if you want to refinance a mortgage!
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