There’s never been a better time than the present to
refinance your mortgage loan. Right now, mortgage rates are low, and
refinancing could mean taking points off your current rate or lengthening or
increasing the term of your mortgage to work better for you. There are tons of benefits to refinancing, talk them over with your financial planning professional, and continue to read on below.
If you are considering mortgage refinancing at this time,
though, there are a few tips you’ll want to keep in mind as you prepare to make
this helpful change.
Tip #1: Get Everything Together
First things first, prepare yourself to deal with a lot of
documents and paperwork. That probably doesn’t sound very fun, but,
unfortunately, it’s part of the refinancing process. The good news is that you
can make the whole process easier on yourself if you go ahead and gather up
everything you’re gong to need ahead of time. This will typically include:
l Proof
of income in the form of pay stubs from the last 6 pay periods
l Copies
of your tax return from the last two years
l Receipts
or canceled checks from child support or alimony payments
l Proof
of any assets owned
Having this information on hand and ready to go will allow
everything to be processed more quickly and easily so that you can get your
refinancing done and start benefiting from it!
Tip #2: Know Your Home’s Value
You’ll also need to go ahead and get your home appraised
before you embark on the refinancing process. Not only is your bank going to
need to know your home’s value in order to determine how much you can borrow,
but you’ll also need to have enough value in your home for it to qualify for refinancing.
Even if it doesn’t
qualify, it’s better to know that ahead of time, before you’ve done lots of
work toward attempting to get your home refinanced.
Tip #3: Get Your Credit in Check
Finally, before you make a go at mortgage refinancing, make
sure you know where you stand in terms of your credit score. You can view your
credit for free online from one of the three federal reporting agencies.
If you find that your credit score is very low, you probably
won’t qualify for refinancing. What you can do, however, is work to improve
your credit so that you will qualify. Again, though, as is the case with your
home’s value, it’s better to know the truth ahead of time so that you can make
necessary changes or find another option before you get too far along in the
refinancing process.
As you can see, refinancing does take some work and
preparation on your part. However, doing that work ahead of time will benefit
you in the long-run and will enable your mortgage refinancing to go as smoothly
and easily as possible for all involved.
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