Here are a few quick tips for refinancing your mortgage.
Tip 1: Ensure that your credit is up to par! You should always review your credit report before applying for a mortgage. Make sure you check for any errors that may be present and address them before you apply for a loan.
Tip 2: Compare Conventional, FHA, and VA loans. FHA loans can be refinanced up to 96.5% of your home appraisal value, conventional loans up to 95% of home appraisal value, and VA Loans up to 100% of home appraisal value. Make sure to get a quote from at least 2 different mortgage companies.
Tip 3: After you get pre-approved for the refinance and move forward with a lender then leave your credit alone. Do not open any new credit lines or initiate new charges on your existing cards. Any new lines or maxed out cards can severely hurt your credit score. If you were on the edge of being qualified at first, doing these things may cause you to be rejected for your home loan at the last minute.
Tip 4: Give your lender a chance to get everything done. Even if you have trouble paying your mortgage, don’t ignore your mortgage provider. Late mortgage payments within the past 12 months will disqualify you for refinancing your home loan.
Tip 5: It’s not over until the fat lady sings. Changes can be made at any time during the refinancing process until the closing day. Make sure to send any and all documents that your loan officer requests within 24 hours, if possible. Any delays made to the process could negatively affect the deal, such as losing your locked rate, and so on.