What You Can Do To Speed Up Your Refinance
Want to speed through the refinance process? Here are some helpful tips to help you move forward quickly.
Determine Your Financial Goals
A refinance can help you accomplish different financial goals. With that, it’s important to sit down and determine exactly what you hope to achieve with a refinance.
A few reasons to refinance include:
- Lowering your monthly payment to reduce the burden on your budget.
- Reducing your interest rate to help you save money over the course of your loan.
- Accessing equity you’ve built in your home through a cash out refinance.
Without understanding why you want a refinance, it can be difficult to move forward confidently.
In order to speed up the process of applying for a new home loan, you can collect the documents you need ahead of time. A few of the big documents you’ll need include:
- Two most recent W-2s
- Two most recent pay stubs
- Recent bank account statement
With these documents ready to go, you will make the home loan application process smoother.
Check Your Credit Score And Report
A quick check of your credit score can help you determine whether or not you’ll qualify for the best interest rates. If you have a relatively low credit score, you may want to delay the refinance process to build your credit score.
Shop Around For The Best Mortgage Deal
The importance of shopping around for the best refinance rate out there cannot be understated. You could save yourself thousands by shopping around for a lender that can offer you the best interest rate.
Beyond comparison shopping mortgage lenders, you should also explore the refinance programs available. A few include a conventional mortgage refinance and an FHA refinance. Each can help you achieve different financial goals. With that, it’s important to compare your options carefully.
Ask For Loan Estimates
Loan estimates can help you understand the expenses that will come along with a particular loan. If possible, ask for loan estimates from two to three of your top lenders.
With the loan estimates in hand, take the time to review the costs of working with each lender. You can make the final decision about a lender when you have all of this information available. It’s important that you compare apples to apples with the loan type and term when reviewing loan estimates.
Ensure That You Qualify
A refinance is a loan like any other. With that, you’ll have to prove your qualifications to the lender to move forward.
Take an honest look at your finances. If you have a bad credit score or an unstable income, you may not qualify for a refinance. But if you have a good credit score and a significant amount of equity in your home, then a refinance could be smooth sailing for you.