Are you looking to refinance your mortgage? If so, you have probably
heard about the current guidelines and red tape that are required in order to do so. Instead of pulling your
hair out in frustration when getting a mortgage refinance, here are a few mortgage refinancing tips to help your
process go as smoothly as possible.
The first thing that you can do in order to help
your mortgage refinance go off without a hitch is by collecting the required information that a lender will need
in order to get you qualified. Just because you have a
current mortgage, doesn't necessarily mean that you will qualify for a refinance. The lender will need
the following information to qualify you for a refinance option: current income, income history for the last
12 years, 2 years worth of tax information, asset verification, employment verification, and a current
appraisal. By collecting some of this information up front, you can get the qualification
process started and sped up by providing the things that the underwriter needs.
Second, the purpose of your refinance will also
determine the loan difficulty. For example, doing a
refinance to get extra money out of your home can take a bit longer to complete than if you were just
refinancing to lower your payment. The reason for this is
that to pull money out of your home, your house must appraise for a certain value, which can be difficult in
today's economic housing market.
Third, your credit score and history is another
determining factor when it comes to a mortgage refinance. Bad credit mortgage
options do exist, but understanding your current credit situation will help you to know what to expect when it
comes to extra documentation that will be needed. Making sure that you
haven't missed payments is very important, but if your current mortgage payment is the cause of you missing
other payments, there are government loan modification options that are perfect for those seeking a bad credit
mortgage option. To get a good idea of what your credit report says, your local bank can print you off a
credit report, or you can get one online for relatively cheap.
As you can see, whether you are looking for a bad
credit mortgage, or a mortgage refinancing loan, these tips can help your process go smoothly, which can
dramatically increase the success rate you will have with getting your mortgage refinance approved by the
underwriters of the lender you have chosen.