Are you interested in refinancing your mortgage? Before you begin, Golden Oak Lending recommends that you prepare your finances and then search for the most competitive rate available. This way, you’ll be well positioned to qualify when the time comes to take action.
We’ve compiled five tips when it comes to mortgage refinancing:
Debt can be a significant factor when trying to obtain the lowest interest rates for your home refinancing. Paying off your credit cards on time is a great way to combat debt and increase your chances of qualifying for the rate you want. When it comes to your credit profile, you’re better off not making a large purchase, such as a car, or applying for multiple credit cards right before you refinance.
Most lenders require a minimum credit score of 640, but you’ll potentially pay a higher mortgage rate for conventional loans. Usually you want to have a credit score of 740 or higher in order to qualify for a conventional loan.
To expedite the loan process and avoid paying for an extension on that super rate you want to lock, get your financial materials together ahead of time. These will include the last 30 days of paycheck stubs as well as your most recent tax return. If there are mistakes that need to be corrected, you can take care of that earlier when you’re not in a time crunch.
When comparing various loan terms, it’s a good idea to begin online and use a refinance calculator to estimate your monthly payments.
Okay, you’ve chosen a loan term. Now what? The next step is to find a lender who is offering the lowest rate. Make sure it is a credible company with whom you feel confident doing business. Ask if they have any special programs available. The loan officers at Golden Oak Lending obviously fit the bill for this area.