It’s a great time to refinance your mortgage. Rates are at a record low nowadays. The government is coming up with new programs to help homeowners. The economy and job market are significantly improving. These factors are helping to boom in mortgage refinancing. But confirming a deal is showing up to be a problem these days – even for well-to-do homeowners.
Due to a few appraisals and strict lending standards, it may be tough for many borrowers to refinance, even if they have good credit and considerable assets. Those who qualify these obstacles can face disappointing waits.
The good news is that borrowers aren’t helpless in the process. By transferring assets to your mortgage lender, cleansing your credit and understanding the new government programs, you can improve your chances of scoring a good refinance deal.
Here are some tips for making your way through the process:
1. Repair your credit. Check your credit report prior to starting the refinancing process. “You want to give yourself ample time to clear up any mistakes and put your best foot forward in the qualification process,” says Jason Walowitz. Borrowers with a good credit scores of 740 or more generally get the best rates, he says.
2. Shorten the loan term. If you are several years into your mortgage, you can boost your savings by opting for a new loan with a shorter term.
3. Consult many different lenders. Nowadays, rates are at historical lows, but the gap between the best and worst deals can be as much as a full percentage point. With pipelines near capacity, some large lenders have been raising rates in an effort to hold down volume while boosting profits.
4. Relationships can make the difference. Banks are all the time vigilant about mortgage lending, but some show more leniency to good customers.