Homeowners And Mortgage Lenders: Refinance And Establish A Good Relationship

{MICAH}

With interest rates at their lowest level since November, many homeowners are rushing to refinance their home loans.

{LARRY}

Money and Real Estate Expert Ilyce Glink is here with some do’s and don’ts for homeowners and home buyers.

{ILYCE}

LAST MONTH, SALES OF EXISTING HOMES SURGED 15 PERCENT, TO AN ANNUALIZED RATE OF 6.04 MILLION. ALL OF THOSE HOME BUYERS RACED TO GET THEIR FINANCING IN HAND, AS DID PLENTY OF HOMEOWNERS LOOKING TO REFINANCE AT TODAY’S LOW RATES. IF YOU’RE LOOKING TO FINANCE OR REFINANCE YOUR HOME, HERE ARE A FEW THINGS NOT TO DO.

DON’T KICK THE TIRES.

HOW MUCH YOU PUT DOWN, CREDIT AFFECTS YOUR INTEREST RATE. IT DRIVES LENDERS CRAZY TO PICK UP THE PHONE AND BE ASKED WHAT IS THEIR BEST RATE. HOW MUCH YOU PUT DOWN ON YOUR HOME AND HOW GOOD YOUR CREDIT IS DIRECTLY AFFECTS THE INTEREST RATE ON YOUR LOAN. YOU CAN SHOP
FOR RATES, BUT BE PREPARED TO SPEND TIME ON THE PHONE OR IN PERSON PROVIDING YOUR LENDER WITH ENOUGH INFORMATION TO GIVE YOU AN INTELLIGENT ANSWER.
1. DON’T LIE ON YOUR APPLICATION.
SOME BORROWERS LIE. THEY INFLATE THEIR INCOME, DENY CREDIT PROBLEMS, AND MINIMIZE DEBTS LIKE CAR AND SCHOOL LOANS. BE SURE YOU TELL YOUR LENDER ABOUT ANY CREDIT PROBLEMS YOU HAVE. THE LENDER HAS TO VERIFY YOUR INCOME, DEBTS AND CREDIT SCORE, SO EVERYTHING WILL COME OUT IN THE END – IF YOU LIE YOU JUST END UP LOOKING BAD. AND, OF COURSE, YOU COULD GO TO JAIL FOR FRAUD.
1. DON’T EXPECT YOUR LENDER TO DROP EVERYTHING AND WORK ON YOUR LOAN.
GOOD LENDERS ARE BUSY WORKING ON HUNDREDS OF OTHER LOAN APPLICATIONS. DON’T ASSUME YOURS WILL IMMEDIATELY RISE TO THE TOP OF THE PILE. IF YOU HAVE A SHORT WINDOW OF TIME, ASK THE LENDER IF HE OR SHE CAN GET YOUR LOAN DONE IN FOUR WEEKS UPFRONT. IF THE ANSWER IS
NO, FIND SOMEONE ELSE. IN MOST CASES, THE TIME ISSUE IS THE PROPERTY APPRAISAL. IN SOME AREAS, APPRAISERS ARE BACKLOGGED 4 TO 5 WEEKS.
1. DON’T “PLAY THE FLOAT.”
MOST BORROWERS DON’T UNDERSTAND HOW A RATE LOCK WORKS.

A RATE LOCK IS A COMMITMENT BY THE LENDER TO LOCK IN A SPECIFIC INTEREST RATE FOR A SPECIFIC PERIOD OF TIME. IF YOU WAIT TO LOCK IN, HOPING RATES WILL GO DOWN, AND THEY GO UP, YOU’RE OUT OF LUCK.
DON’T LISTEN SELECTIVELY.

MORTGAGE LENDERS COMPLAIN THAT THEY EXPLAIN THINGS TO BORROWERS WHO CHOOSE NOT TO HEAR THEM. WHILE IT’S TRUE THAT SOME OF THESE CONCEPT ARE A LITTLE DIFFICULT, YOU SHOULD TUNE IN AND LISTEN TO EVERYTHING THE LENDER TELLS YOU. WRITE IT DOWN IF YOU HAVE TO. IF THE LENDER TELLS YOU HE OR SHE NEEDS CERTAIN DOCUMENTS, PROVIDE THEM. IF YOU DON’T, YOU COULD FIND THAT YOUR APPLICATION DROPS TO THE BOTTOM OF THE STACK.

{ILYCE}