Indianapolis Mortgage Company Shares Tips Tips to Refinance Your Mortgage
COVID-19 has brought a lot of difficulties and heartbreak, but there is a silver lining when it comes to real estate, and that is some amazing low mortgage rates.
For that reason, a lot of homeowners right now are looking into refinancing so that they can take advantage of those low-interest rates.
If you want to refinance successfully and qualify for the lowest rates possible, what steps can you take?
Refinancing in Today's Market
The following are a few tips that will help you make the most of the opportunity to refinance at today’s rock-bottom rates.
- Make sure your credit is as high as you can get it.
The number one factor which lenders will look at when you try to refinance is your credit score. Just as that was the prime factor when you first applied for a home loan in determining your existing mortgage rate, so it will also be in determining your new mortgage rate.
If there is anything you can do to raise your credit score quickly before you apply to refinance, you may be a stronger candidate qualifying for lower rates.
Here are a few steps you can consider to rapidly boost your score:
- Sign up for Experian Boost if you haven't already. When you opt in to this service, you give permission for your utilities to be calculated into determining your credit score. If you are current on your utility payments and have been for a long time, you could see a significant jump in your score. Best of all, it is instantaneous.
- Check your credit report for errors. You would be surprised by how often they crop up. If there are mistakes in your report which are harming your score, simply submitting a correction could result in an improvement.
- If your credit utilization right now is above 30%, see if you can reduce it below that threshold. Doing so may improve your score.
- Have any debts which you could pay off right now without destabilizing your finances? If so, think about doing so.
After taking the steps above and seeing improvements reflected in your credit score, you can apply for a refinance while feeling confident in your borrower profile.
Just make sure that you do not wait too long to move on the process, because today's low rates may not stick around. In other words, do what you can to boost your score, but do not be a perfectionist.
- Get paperwork ready.
Because rates continue to fluctuate, the faster you can move through the refinancing process and sign, the better.
Just as when you applied for your original home loan, there is going to be a lot of verification documentation necessary along the way.
Michael Farrell from Grandview Lending states, "One way you can move things forward is to grab all the documents you will need in advance. That means gathering the relevant tax returns, pay stubs, bank statements, and so forth and having them ready to share with a lender."
By having those documents ready to present, you make it less likely that the lender will be waiting on you at any point during the process. You can immediately throw the ball back into their court.
- Be ready to pay the closing costs.
See if you can get the funds you need to pay the closing costs for your refinanced loan upfront.
There are two advantages to doing so. The first is that if you get the funds ready in advance, this again will reduce possible delays as you close on the mortgage.
The second benefit is that paying closing costs upfront may reduce the rate on your refinanced home loan.
- Use a mortgage broker.
Another recommendation to successfully refinance at the lowest rate you can is to go through a mortgage broker rather than a direct lender.
A mortgage broker can connect you to an entire network of lenders, shopping around on your behalf. This saves you the time and effort while giving you access to more competitive loan offers.
Refinance Now with Grandview Lending
Grandview Lending is a top-rated mortgage broker in Indianapolis with a well-established network of local lenders offering competitive mortgage rates.
They would love the chance to help you reduce the mortgage rate you are paying now and refinance for other great benefits to a home loan which ideally suits your needs.
To refinance today, call Grandview Lending at (317) 255-0062 to schedule your mortgage refinance consultation in Indiana.