There are a large number of homeowners in America that think that it is a fantastic time to shop around for a new mortgage and refinance their home. They are particularly looking for mortgages that have lower payments as well as lower rates of interest that are fixed, rather than adjustable.
This mad dash to refinance which came about because of lower interest rates, has caused a flood of loan applications to land on mortgage brokers and lenders desks alike.
However, many lenders are now tightening up requirements for a loan. Therefore, you are going to have to have a good credit score to get the loan, or some equity in your house to refinance. Your credit score and information is will determine the type of loan and or mortgage terms you will be qualified for.
A free copy of your current credit score can be obtained once every year from one of the three major credit-reporting agencies such as Experian, Equifax and TransUnion. Once you receive a copy of the report, you must check and recheck for any errors that may be present on it. If you spot any, you should report them at once to the credit agency and have the errors fixed. This can give a large boost to your credit score and will ultimately assist you in getting better interest rates.
To ascertain the amount of equity you have in your home, you must subtract the total amount of money owed on all currently existing mortgages, from how much you think the home you have is worth. If you are in a situation where your credit is very damaged or you owe more money that the value of your home, chances are that you will not be able to refinance at the moment.
The processing time of all the paperwork needed for a new loan takes a while. You must be patient as the loan goes through the system. During this time, do all that you can to not incur any more debt and protect your credit score by paying bills on time, paying your mortgage and not taking on any new debt.
You should make sure that you loan representative keeps in contact with you as you keep in contact with home even if there is not any new action with your loan. However, if you do not hear any word from you loan representative for a couple of days, you should call them to get an update. If you stay on top of this, you can fix any problems that might arise.
You are responsible for understanding your loan terms, so get informed and ask questions as well as listening carefully. Be sure never to sign your loan documents until you are comfortable you have made the right choice.
After the application is submitted, you will most likely be asked for more documentation and information about your assets and income. Answer all of the questions, then fax over any documentation they need to your loan representative as quickly as possible.
Once the loan is approved, sign any document and pay for any closing cost that may be presented. Make sure you have the money to do this, as well as being prepared to signing more documents. Now you will be able to refinance.
Tim Orick enjoys the outdoors and wants everyone to experience the same. From an early age he has been fascinated with solar energy, wind power and hydro power. Recycling, water conservation and environmental awareness has recently gained attention on a global scale and if we all do our part, there exist enough resources for many generations. I invite you to visit nj-refi.com nj-refi.com and browse refinance and loan offers from a wide range of refinance companies.
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