5 Tips for a Successful Refinancing

Successful Refinancing

Refinancing presents a great opportunity for homeowners to benefit from the lower payment and save money. However, to refinance in the right way, you should consider a few things. This will guarantee you prepare well before contacting the right lender for refinancing. The best course of action is to seek a professional like a mortgage broker. Here are tips that will be helpful in securing the best mortgage rates

1. Know your credit score

Having a clear idea about the credit score is highly essential as it determines the loans you qualify for and other factors such as interest rates Thus it is vital to focus on improving the credit score before applying for refinancing, especially when on the lower end of the spectrum.

2. Understand your equity

You must understand the equity you have currently in your property and is built by making payments timely. Remember, equity determines rates available to you. The more equity you have in your home versus your desired loan amount (Loan to Value) determines your pricing and rates. To understand this calculation more specifically, you may contact a professional mortgage broker. The Vieira Mortgage Team is a great choice whether you are looking to  refinance in Orange County or anywhere else in the state of CA. 

3. Don’t forget closing costs 

Some loans have higher closing costs than others. Depending on your unique situation, you may or may not have closing costs with your loan. The lower the rate, the higher the cost of the loan. If you are planning on staying in your home for a longer period of time, it makes sense to “buy down” your mortgage rates, meaning you pay for a lower rate. Although there is an upfront cost, you save money over time with a lower rate. In a good market, cost of rates are low and it’s possible to secure no cost loans where you don’t have to pay anything out of pocket or include any costs in your loan. Some common fees include cost of the loan, appraisal fees, application fees, title and escrow fees, condo fees, etc. 

4. Set yourself for appraisal success

As discussed previously, the loan to value ratio is one of the main factors that determine what’s available to you as far as rates and costs. There are many instances where you will not need an appraisal and the value is calculated by your loan officer. This is called receiving an appraisal waiver. Other instances require an appraisal to visit the property and evaluate its value using forms provided by either Fannie Mae or Freddie Mac (the two mortgage institutions). Specific criteria are evaluated such as neighborhood demographics, housing trends, utilities, home measurements, site characteristics, property condition, general improvements, etc. It’s very important to notify your appraiser of any improvements made on your home. It’s essential to make sure your home is in good order, as the goal is to receive the highest value for your home. 

5. Respond quickly to lenders inquiry

Generally, refinancing takes 30 to 45 days. However, the Vieira Mortgage Team closes in 30 days or less. If you are looking to refinance right away, it’s important to be attentive and be responsive to your loan officer, as it does take some back and forth to gather all necessary documents to fund your loan. Since the loan officer works with underwriters at lending institutions, it is not up to the loan officer to decide what is and isn’t needed. You can make things easier by making yourself accessible for your mortgage loan officer and processor. 

Contact a trusted professional for refinancing.

If you’re thinking of refinancing, then contact The Vieira Mortgage Team, a company that offers great mortgage rates and programs for both refinancing and purchasing. Our professional mortgage broker and team bring forth the best mortgage experience. We can serve you right here in our home time if you are purchasing or refinancing in Orange County or anywhere else in California

Contact us to know more.

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