- 1). Document your yearly income to see if you qualify for a mortgage refinance. Gather your paycheck stub or W-2 statement. Provide tax returns for the previous two years if self-employed.
- 2). Get your credit in order. Look over your credit report and check for any remarks that can prevent a refinance such as high debts, collection accounts and late payments. Increase your FICO score to 680 or higher by paying off accounts and paying bills on time.
- 3). Search for the best rate. Plan to compare rates. Ask your current lender to quote their best rates and terms, and then compare this offer with at least two other lenders. Brokers can provide quick rate quotes for mortgage loans.
- 4). Get your house ready for the appraisal. Home appraisals are a part of the refinance process. The home's value must exceed the mortgage balance. Clean up the property--inside and out. Do home repairs, finish remodel projects and give the property a fresh coat of paint to help raise the appraised value.
- 5). Sign the mortgage papers and pay closing fees. Complete a home refinance by signing new loan papers and paying the closing costs. Use personal cash for closing fees or add this fee to the mortgage balance. Discuss options with your lender.
previous post
next post