Wednesday, June 18, 2014

Things you Must Know Before Refinancing your Mortgage

News from the Mortgage Bankers Association has put many home buyers and mortgage shoppers on the alert. They have estimated that the APRs may go up by a percent from the current 3.4 percent for a long-term fixed mortgage of 30 years. Does that imply you should refinance quickly? Steve Morgan at Bethany Beach Lender gives you a few helpful tips.

What to expect while mortgage refinancing

There are a few simple but vital things you must do before you rush to get a better finance option.
  1. Be prepared – Financing means money and a financer would like to ascertain that your repayment ability is up-to-the mark. Documentary evidence is mandatory, so it would help if you keep copies of pay stubs, proofs of your assets and liabilities and tax returns filed handy.

  2. File an application – With all documents ready and an impressed financer, the next few steps are relatively easy for you. Fill out the lender’s application accurately and honestly. You must make time; shop around for the best financers. Approaching your current provider, provided you have a good payment history, would not be a bad idea too, if they offer better refinances. Once an application has been submitted, be patient. Processing applications takes a while. They need to verify your suitability and go over every aspect of your finance with a fine-toothed comb.

  3. Choose a rate and seal the deal – Once approved, choose an optimum mortgage, preferably with a locked rate for the initial months so you do not worry about soaring APRs. Make sure you clarify every small doubt you have before the mortgage closing takes place and you land a new deal.
As you see, it’s not that easy to choose a better mortgage. Helpful personnel like Steve Morgan at Bethany Beach ensure that you understand every stage of the process. So follow these basic steps and enjoy a more convenient mortgage for a long period of time!

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