Refinancing can be frustrating if you find out at the end that you were taken advantage of. Here is a simple guide that will help you save money and relax.
When you refinance, it's so easy to lose money for no reason. Hidden fees and penalties, terms you didn't fully understand, or a hard-core loan officer who avoids issues you may have can cause headaches you don't need.
need! Let us show you how easy it is to stay safe and come out on top.
=Information Coming In... Go online and look for the websites of big lenders like Bank of America, World Savings, Indymac Bank, and so on. Everyone should have a full list of the refinancing programmes that are available right now. Check out both fixed-rate and variable-rate mortgages to get a good idea of
how they function. These big lenders spend a lot of money to make their mortgage refinancing programmes easy to understand. Make the most of them.
=Making Contact...
Make sure the loan officer doesn't avoid any of your questions when you talk to a lender. If they lose focus and try to avoid problems, move on to the next lender. Get a good faith estimate and all the details of
the loan programme you're interested in before you decide to move forward. There will always be things that make you wonder when you see these.
Don't give them your credit report just yet... If you give every company that wants to refinance your mortgage permission to check your credit, this can hurt your score. Wait until you find a company that makes the programme you want and that you can trust. For a good quote, they need to know a lot about your credit. You can call the major credit reporting agencies and ask for a copy of your credit report, which you can then fax to them or have them send you a copy.
Borrower Authorization Form: This form lets them check your credit.
=Tell Me About the Fees... In a refinance, the list of fees can often include fake ones.
fees: Fees that are made up so that the loan officer can make more money. Only pay the fees that you have to. Carefully go over it with them. And remember, you can always talk about the origination fee.
=Don't forget about the prepayment penalties... There is always the chance of prepayment penalties, especially with loan refinance programmes that let the loan amount change over time. Some points can be used to shorten or get rid of the prepay term. But save your money if it's a great loan that fits your needs. Most prepays last between 2 and 3 years. Most people get a new mortgage every 4 to 5 years.
The final sign-off... Once your full refinance package and appraisal have been sent to the lender and your loan has been approved, ask the lender to show you a list of the fees. Make sure there are NO junk fees once more.
=One last thing...There are many different kinds of loan programmes, each with its own pros and cons. TAKE YOUR TIME! Make sure to talk to your loan officer about ALL the options. For example, you might be able to choose to pay only the interest, or you might find that a longer term on the limited fixed rate programme is better for you. If you follow these 6 simple steps, you will save yourself a lot of time, trouble, and, most importantly, MONEY.
