Refinancing Guide
Refinancing your home may not be your favorite thing on your “to-do” list to tackle, but the fact is that it may be the most impactful. Refinancing to a more favorable term or lower interest rate can save significant amounts of money over the life of your loan. Or, changing your financing can free up the cash you may need in pressing situations, like renovations, college tuition or unplanned home repairs.
We’re here to make the process less intimidating and more understandable. Even if you’ve been through the mortgage process before, you may not be aware of all of the specialized mortgage products and options that can be tailored to help you to either save money or gain access to funds at lower interest rates than the average credit card. At Justin Bush Mortgage Team we can help cross this daunting task off your “to-do” list.
Steps to Refinancing Your Mortgage
Congratulations! You’ve evaluated your finances and want to make improvements to reach your goals. Before beginning the loan process, it is important to do your research. There are many steps involved to make sure you have a smooth and successful experience. Start by pre-qualifying for your refinance loan. Simply fill out the pre-qualification form online and a licensed loan officer will contact you within 24 hours.
Pre-Qualify
What is pre-qualification?
Pre-qualification determines your ability to repay a loan based on the information you provide. Your liability, asset, and income information are reviewed by a licensed mortgage loan originator to establish the maximum purchase price you can afford and how much you may be able to borrow.
Understanding Your Credit Report
Your credit score is not the only factor in getting approved for a mortgage, but it is an important part of determining what you will be able to qualify for.
Check your own credit score before meeting with a lender.
It’s important to make sure that your score is accurate when applying for a loan. You can get a free credit report once a year online by visiting annualcreditreport.com.
Verify the report for accurate information.
Report and dispute inaccuracies with the credit bureau. Disputes in the process may delay loan approval.
Paying down high credit balances may positively affect your credit score.
By paying down applicable lines of credit before applying for a loan, you may qualify and get approved for a better interest rate.
Set up payment plans.
Call your creditors and work out a budget-friendly payment plan on delinquent accounts prior to applying for a loan. Work out a plan that won’t harshly affect your debt-to-income ratio but will still let lenders know you are serious about being credible for your debts.
Start The Refi Process
By now, you’ve selected your lender and you’ve gotten pre-approved. It is time to start the loan process! Meet with your licensed loan officer to help you gather paperwork and submit your mortgage application.