When mortgage rates are on the decline, many home loan borrowers rush to refinance their loans. Refinancing to a lower-interest mortgage is after all a great way to save a substantial amount of money. If you are considering refinancing your mortgage, keep these tips in mind to ensure your application goes through without any hassles.
- Know Your Credit Score: If your goal is to refinance to a loan with a better interest rate, you must check your credit score before submitting the application. If your credit score has dropped in recent times, you may want to wait until it has improved to apply for the loan.
- Don’t Get Distracted: In your rush to refinance your loan, you may be tempted to apply for any loan that seems to have better terms than your current loan. However, to get the best deal on your mortgage refinance, it’s important to do a thorough comparison of the various loans that are available in the market.
- Keep Your Documentation Ready: When you apply for a loan refinance, it’s likely that you’ll need to submit a number of documents to the lender. If anything is missing, the lender may reach out to you, so ensure that you stay on top of any communication you receive. Don’t forget to check your mails, voice mails, and emails for information about your mortgage application.
- Prepare For The Appraisal: Appraisers are busy, so it’s a good idea to get in touch with your lender beforehand to inquire about what can help your appraisal. For instance, if you live in an earthquake-prone region, you may need to get earthquake-resistant straps for your water heaters. Making such changes around your home can help you ace your appraisal. Further, if you’ve done any home improvements or remodeling projects, ensure that you let the appraiser know.
- Don’t Get New Loans Or Credit Cards: Lenders may recheck your credit report at any time during the application process. So, avoid applying for any new credit until your application is approved and your loan comes through.
Don’t forget to keep a record of every conversation you’ve had with your mortgage lender. It may help your case if you can prove you were proactive.
