6 Tips for Refinancing Your Home
Identify your end goal for refinancing. Is it to reduce monthly payments? Take out equity? Switch from A R M or Fixed? Reducing the term of your loan? Reducing the interest rate on your loan? Clearly articulate why you’re looking to refinance.
Refresh old paperwork:
Keep all paperwork in a safe place. You’ll need to dig it up and update each piece. You’ll also want to obtain a new credit report and understand your score, then take the proper steps to correct any errors. TIP: Now is not the time to be applying for new credit cards or opening new accounts. This affects your score and your Compeer Home Mortgage Specialist will need to run your score again.
Use a Mortgage Calculator:
Use tools like our refinancing calculator to figure out what makes sense for your personal budget. Remember to think about the closing costs. Even “no cost” refinancing options have fees.
Submit Your Application:
Be sure to come prepared with the required documentation for the application. Required documentation may include recent paystubs, bank statements, and most likely two or three years of complete tax returns.
Get an Appraisal:
Getting an appraisal will give you a better understanding to how much your home is worth.
Stick with it:
You’ve done your homework and compiled the right paperwork. Keep in touch with your lender. If they request extra documentation or have questions, respond quickly to help speed up the process.
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