Plan your Refinance
Refinancing your current home loan can be an intimidating process, especially if you had less than a great experience before. Here is a step-by-step guide on what you’ll need to do in order to successfully navigate through each milestone of refinancing your current home loan. As always, please feel free to contact me any time with questions at 562-741-9984 or via e-mail at socalhomeloans13@gmail.com.
- Do a credit check. Work on your FICO if necessary to get the best rate possible.
- Do pay down debt. No more than 10-30% credit utilization is ideal.
- Do save money. Not only should you have money saved for your down payment and closing costs but unexpected expenses might arise once you are in your home. Having a little extra money secured for these expenses will give you peace of mind.
- Do continue to pay your bills on time. Having derogatory items show on your credit report while you are in a transaction can be stressful. Save yourself the headache and potential higher interest rate and stay on top of paying your bills on time.
- Do talk to a professional about your loan options. There are different programs that may allow you to come in with less of a down payment or may have a higher threshold for debt. Talk to someone who can tailor your loan to your lifestyle and needs.
- Do get prequalified so you know what you can afford.
- Do get preapproved prior to making offers. A preapproval is a more thorough check of your borrowing abilities and will make your offer more attractive to sellers.
- Don’t make large unnecessary expenses before or during your transaction. If it can wait until after the transaction, hold off.
- Don’t skimp on a home inspection. A home is the largest purchase you can make. Ensure your investment is safe by finding out what condition the property is in.
- Don’t borrow more than you feel comfortable paying. Just because you can afford the payment on paper does not mean you should dramatically alter your lifestyle.
