What To Do (And NOT To Do) When You Refinance Your Mortgage

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Home MortgagesMortgage Interest Rates are at record lows, and home values are skyrocketing.  It’s time to refinance, and make sure that you know that you’re paying the smallest amount of interest on your home.  You can use a refinance to take money out of the house, refinance credit card debt, lower your payments, or shorten the commitment on your loan.  Sometimes we can accomplish all of these together!  However, not everyone is going to be able to refinance today.  We want you to be able to refinance with The Home Loan Expert team, so here are a few things to look at before you apply:

Will You Be Able To Get Those Low Rates?

Before you refinance, check your credit scores before you apply. If your credit scores are really low, you may not qualify for those low rates and you don’t want to waste your time.

If your score is high, don’t screw up your credit before the application or during the loan process. No applying for credit cards, no buying cars, no major purchases. Just hold off until the refinance is signed!

Make sure that you know your property value and the state of your mortgage. Are you underwater? Missed payments? How much equity do you have in the home? Equity is a pretty big requirement for a refinance. Your debt-to-income ratio should also be as low as possible, going back to the don’t buy new stuff point.

Your Home Isn’t For Sale, Is It?

If your home has a listing on it for sale, it can keep you from refinancing. You might have to take down that listing and wait 6 months before you can re-apply for a mortgage.

Your old mortgage may have penalties associated with it that can cause you to have to pay a penalty to refinance early. Read those documents carefully, or let us take a look at them.

Lock It Down

Make sure that your mortgage rate is actually locked, meaning it won’t change come the day you sign your loan documents. Some borrowers seem to think their rate is set in stone because they got a quote. Get it in writing, and you won’t have any surprises.

Get Started

Of course, when you work with The Home Loan Expert, Ryan Kelley, that’s never a problem. We work with you, step-by-step, to make sure that you get the lowest rate possible . These tips will help you when you’re looking to buy a home in St. Louis, Chicago, or Indianapolis. Call us in St. Louis at (314) 781-9700, Chicago at (773) 770-6438, or Indianapolis at (317) 550-1515. You can always apply online at www.thehomeloanexpert.com, and we’re also open on Saturdays to better serve you. Don’t forget to follow @TheHomeLoanEx on Twitter for breaking mortgage news and knowledge.  Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?