With mortgage rates at an all time low, many people are considering refinancing their mortgages to lock in those good rates. You want to get your ducks in a row before you start the process though.
Refinancing your mortgage can be a simple process, but it can also be rather difficult if you don’t have everything prepped. If you’re considering refinancing in 2013, find out how to get a jump start on the process.
Your credit score was part of the process before, so it’s no surprise that it will be part of the process again. If you can’t recall the last time you checked your credit score, you’ll need to be sure it’s ready for 2013. Make sure your there are no signs of identity theft. If your credit score is not doing so well it might be best to delay refinancing your mortgage and repair your credit first. Typically it can take about 90 days to see some improvement.
Do you know why you’re refinancing? Be sure of what you’re trying to do before you start taking to a lender. Besides refinancing your loan you might want to consider extending your loan, switching from an adjustable rate to a fixed-rate mortgage, or reducing the length of your mortgage loan.
You may also want to use a mortgage calculator to figure out what your potential payments could be. You could also use to estimate the kind of rate you are hoping to get.
Once you’ve figured out why you’re going through the process, make sure you understand it 100%. This means asking as many questions as you need to. While mortgage lenders may be the “pros” it’s still important that you understand what they’re doing and how it will affect you.
You need to know what you’re worth too, or at least what your home and its neighborhood are. Knowing home values can help you figure out where your home stands, should you owe more than the home is worth refinancing your mortgage may be a difficult process.
Go into the refinancing process prepared for what’s lays ahead. Some of these steps could also help the process be a bit more cost efficient as well. If you need to refinance your home, AmOne can help you get connected with the right lender for you. Contact AmOne when you’re ready to start the process.