you are thinking about doing a mortgage refinance, you may have wondered how hard it will be with the new
guidelines and extra documentation that are being required. Rather than starting out being frustrated, following these
tips will help you make it smoothly through the mortgage refinancing process.
First, you need to
decide on the purpose for your mortgage refinance.
This will help to determine the length of time it will take to complete the process. For instance, refinancing in order to lower your payment will
take less time than if you want a cash-out refinance to remodel your kitchen. Part of the reason for the extra time is that if you want
cash out of the loan, you will need an appraisal of the house and it must come in at a certain amount above the
value of your current loan.
Next, by gathering all
of the necessary documentation in advance, you can help your mortgage refinancing go much more
smoothly. If your loan officer has to ask for one
document after another and you can't find all of the documentation, you may not only prolong the process, but
may not be able to get the loan you want. Some of
this required paperwork includes income verification with current paycheck stubs, verification that you have
worked at the same job or in the same field for at least the last 2 years, a current appraisal of the home, and
recent income tax returns. You can talk with your
lender to find out exactly what they will need and gather it before you meet with a loan
You will also need a
copy of your credit report. Your credit history is
one of the biggest determining factors when it comes to mortgage refinancing. There are a few options for bad credit mortgage loans, but
you will have many more options if your credit is good. The main thing is that you understand your own current credit
standing so that you will be expecting the kind of documentation that is going to be required. If your current mortgage payment is part of your credit
problem, there are government loan modification options that may help a person looking for a bad credit mortgage
If you know why you want
to refinance, prepare by gathering the paperwork, and understand what your credit situation will mean to the
whole process, you will be able to make it through the mortgage refinancing process without having to be
frustrated by how long it will take and the amount of documentation that is necessary.