Category: Refinancing

What To Do (And Avoid) When Refinancing

Mortgage interest rates are always changing, and if you bought your home when rates were higher, refinancing the existing mortgage could save you thousands of dollars over the course of your home loan. When you are preparing to refinance there are certain things you should and avoid leading up to the transaction. Take a look at the list below and contact a Marketplace Home Mortgage Loan Officer to learn more about how you can get started.

DO

Continue To Make Your Regular Payments
However, if you have a payment due just prior to your scheduled closing, consult with your Loan Officer first. It may be best to pay at the closing rather than to risk having the payment and payoff letter cross in the mail.

Prepare Your Home For Appraisal.
The appraiser will take photos of the inside and outside of your home. While a messy house is not truly worth less than a clean one, a property appraisal is part art, part science. First impressions can make an impact with an appraiser just as they would with a prospective buyer.

Keep Your Paystubs and Bank Statements Available
Underwriters may request the latest documentation before loan approval or as a condition of loan commitment. Having these on hand will help the process to go more smoothly.

Understand That Things Have Changed.
Underwriters require more documentation than in the past. Even if requests seem silly, intrusive or unnecessary, please remember that if they didn’t need it, they wouldn’t ask.

 

AVOID

Apply For New Credit
Changes in credit can cause delays, change the terms of your financing or even prevent closing. If you must open a new account, consult with your Loan Officer first.

Change Jobs During The Process
Probationary periods, career, or even status changes (such as from a salaried to a commissioned position, leave of absence or new bonus structure) can be subject to very strict rules.

Make Undocumented Deposits
Primarily large, but sometimes even small deposits must be sourced unless they are identified. Make copies of checks and deposit slips. Keep your deposits separate and small and avoid depositing cash.

Start Any Home Improvement Projects
Small cosmetic projects like painting are not usually a problem. However, anything that can disrupt the functionality of your home can be an issue if undertaken before the appraisal. Delay projects that require a building permit, create structural changes or involve a bathroom or kitchen renovation.

Be Afraid To Ask Questions
If you’re uncertain about what you need or what you should do, never hesitate to reach out to your Loan Officer.

With the help of your Marketplace Home Mortgage Loan Officer, you will be on your way to saving money and achieving your goals.