Wednesday, January 23, 2008

3 Things to Look for Before Mortgage Refinancing

3 Things to Look for Before Mortgage Refinancing by John Smith Jr

More and more people are into mortgage refinance these days. For them, this is one of the few means left to salvage their homes-and themselves. However, their applications take a much longer time to get done. Others are even rejected.

These situations can have something to do with the requirements that you're currently submitting. It's either they're incomplete or not updated or that you didn't pass them on time. It is thus very important that you have a good idea of what to prepare to help you save time and increase your chances of getting approved.

Credit Report and Bank Accounts

Your credit report is very essential, especially when you're applying for a refinance mortgage. This will serve as proof to your lending company that you're capable of paying your dues.
When requesting for a credit report, make sure that you ask for it from your corresponding credit agency. They would normally give free copies of your credit report each year. When you already have your copy, don't forget to double-check the information it contains, such as your name and your address. Keep in mind that if any of these data is wrong, then there's a huge possibility your application gets junked. If you find any error, get in touch with your credit agency as soon as possible. The sooner you bring the matter to their attention, the faster you can submit the right documents for your mortgage refinance application.

Besides your credit report, you also need to have your savings and other bank accounts ready. They will also look into them. Of course, they would possibly deny you the application or even your desired amount if you have wealthy accounts. Nevertheless, it doesn't mean you have to twist data just so you can be granted. Lying doesn't have any room when you're in mortgage refinance, so don't waste your time on it.

Status of Your Mortgage

The lending company would certainly love to know how they'll be able to help you and where you have possibly gone wrong. You can make use of your monthly payment, the status of your property today, as well as the insurance and tax payments. Definitely, you also need to reveal your present outstanding mortgage and even the contact information of your lender, should you consider another on your second mortgage.

Documents Relating to Your Property

Your home plays a crucial role when you're applying for your second remortgage, so all documents pertaining to it should also be prepared. These include your title to prove that it's really your property as well as a site survey copy. You may also have to have someone appraise your property to know the true value of your home.

If you're seriously considering going for remortgage refinance, then you must be totally armed. You can't possibly too complacent, thinking that your payroll slip is more than enough to prove that you're worth to be approved. Gathering documents can sometimes be a hassle, but if it's going to increase or even guarantee your approval, then it's going to be worth it.

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