Factors That Credit Card Companies Look at When Evaluating an Application
If you have decided to refinance your mortgage, you probably have done this because you need more time or you want to take advantage of lower interest rates, you have made the initial step in a lengthy process.
Mortgage refinancing takes time.
There are several processes you have to undergo for your finance decision to go through. Here are some questions you should ask...
1. What type of refinancing do you want? The first part of the process is having clear goals for your refinance. You may want to have your interest rates adjusted in a standard refinance, you may want some money from your equity, or you may want to shift from a fixed-rate mortgage to an adjustable-rate mortgage.
2. What is the status of your credit score? After determining the type of loan you want, you should check that your finances are in order. Your credit score is the greatest indicator of the health of your finances, and it determines whether you qualify for a loan and at what interest rate.
3. What is the value of your home? It is important to know the value of your home as it affects your finances. The best way of knowing the value of your home is to compare it with other homes in your neighborhood. You should also check realtor sites for the sales values of homes around you. Other factors that determine the value of your home include the lot size and upgrades.
4. How is the lending market? You should compare several lenders before making the final finance decision. You do not have to refinance your mortgage with your existing lender. Check out the competition and ensure that you get the best deal, such as low-interest rates. After settling on a lender to refinance your mortgage, you should prepare an application. You will need things like pay stubs, tax forms from 2 years, and bank statements. The lender will make an appraisal of your home as part of the refinance process. The next step is closing on the refinance, which requires a public notary’s signature. You can then start paying your monthly dues to your new lender after the refinance is closed.
Finance decisions are not easy to make, and you may require the help of professionals.