Looking to Refinance Your Mortgage? Tips to a Better Experiene
Are you looking to take advantage of lower mortgage rates? They fell to levels that went as low was 3.31% around the latter part of 2012. If you are considering this, there are a number of home refinancing options you have available. Here are some tips to make the process go better when you are looking to refinance a mortgage.
Follow up with your mortgage company often. The real problem you will face as you look to refinance your mortgage is that there are a lot of home owners who are looking to do the very same thing. You will need to stay on top of your lender in order to make sure that your application is lost among a sea of other home refinance applications. Follow up and make sure they do not lose your documents. Experts recommend checking in with your mortgage lender at least once a week. More than that and you will annoy them. Less than that and they may lose your stuff or forget about it.
Be patient. Because the rates have gone so low, many people are trying to take advantage and this influx of applications for the various home refinancing options has overwhelmed most mortgage companies. It used to take most home mortgage lenders no more than 30 days to approve a refinance application, it now can take more than 45 days. In some instances, it has taken 60 days or more. If you go into the process knowing it will take longer than you may have expected, it will be less stressful.
Have all your documents together. The process for getting a mortgage refinance application approved is a long enough one. If any of your documents are missing, it will delay that even further. It does not matter which of the home refinancing options you select, you need to have everything in order when you turn it in. It is often a good idea to scan all of these in and then store them in a secure location so you can reproduce them easily should that be needed.
Prepare as soon as you can. When you start thinking about your home refinancing options, you should take the opportunity to get all of your paperwork together. You will need two copies of everything. The documents you will need include your bank statements, tax documents, pay stubs and anything else that may help with your application. The sooner you can get your refinancing paperwork in, the sooner they can approve your application and the more money you can save over the life of your home mortgage.
Ask about the timeframe. When you submit your application and all of the supporting paperwork, you should ask the lender what they think the time frame will be for an answer. When they think they will be able to give you an answer may influence the rate you end up getting. You can usually lock in a rate that you want for 30 days from when you submit the application. There may be a fee that has to be paid to extend the rate if the loan has not been approved and finalized before the 30 days is up. You should really consider locking the rate in for 45 days when you talk to your lender, given the longer wait times that people are currently experiencing.
There are a great many reasons that homeowners are currently looking to refinance their mortgages. The plethora of home refinancing options is just one reason that this may be a good idea for you.
There are some people who really should consider their home refinancing options. If you have a subprime mortgage but have found that you can refinance and to improve the terms of your home loan, that is a great thing for you to do. If your income is not as predictable as some, say you work as a contractor or freelancer, the subprime mortgage may give you options than you would have had with other kinds of home loans.
The chance to renegotiate the terms of your home loan is always a great opportunity to save you a lot of money over the course of the loan.