Applying for a Home Mortgage Refinance Loan
Have you been thinking about applying for a home mortgage refinance loan?
Perhaps you are in an adjustable rate mortgage, looking to consolidate debt, or even just lower your rate to a lower, fixed monthly payment. No matter what goal you are seeking to obtain at closing, one thing that you should stay focused on is how to save time and money when applying for a refinance of your home. However, all too often, many home owners make the common mistake of not being fully prepared.
Being prepared, what does that mean?
When applying for a refinance loan, you will want to be able to lock in your interest rate as quickly as possible when you see a low rate you want. Unfortunately, many homeowners lack the organization of the required documents and end up fumbling for them when they see a low rate, only to miss their chance to lock it in before the market changes, and even delay the closing of their loan which costs even more time, money, and heartache. Here’s how to avoid losing your precious time and money:
Gather Your Employment and Income Information
Always have one month of your pay stubs and spouse on hand, and if you are self-employed you will need to have your tax returns for the past two years. You should also have your W-2′s from your employers for the past two years also. If you haven’t been working at the same place of employment for at least two years consistently, have your work history and employer contact information along with payment history available as well. This will allow you and the lender to quickly and accurately calculate a monthly average of income.
Obtain Most Recent Bank Statements and Other Asset Statements
Typically most homeowners will only need to show two months worth of statements from your bank accounts, IRA’s, 401k, and any other investment accounts when applying for your home mortgage refinance. Documenting assets is a vital part of loan application which can also position you to get the lowest rate possible. Your lender will typically ask for the last 3 months of these statements to evaluate.
Get Your Homeowner Documents Organized
In many cases your lender will ask for the title insurance and home owner’s insurance policy and may even inquire about the property taxes you pay on the home. In some instances they may also ask for to see the note to your home if you have an adjustable rate mortgage or prepayment clause. Also be prepared to show the lender the most recent appraisal and survey of your home in case they ask. One other important document to have on hand is also the most recent mortgage statement that shows the balance and monthly payments of any and all loans on your home.
You’ve got everything Together, Now What?
Good! Now that you’ve got all the necessary paperwork together, you’re going to find that when you’re applying for your home mortgage refinance, you’re going to feel very confident and in control. You’ll notice that nearly every possible question on the loan application will be easily answered because you are prepared with the necessary information and you’re lender will be happy too! So get started and apply for your loan today knowing that you just saved yourself a great deal of headache, time, and especially money by simply getting organized!
Denis Dcosta
http://www.articlesbase.com/mortgage-articles/applying-for-a-home-mortgage-refinance-loan-700825.html
How long after bankruptcy shall I wait to apply to refinance my mortgage?
I filed for bankruptcy in 2004 and I have been paying on it for so long now that I have a chance to pay it on out. I have about a year left to go if I don’t pay it on out. I want to refinance my house. If I pay my bankruptcy and my case is discharged, how long shall I wait before applying for a loan to refinance my home?
It sounds like you are in chapter 13 BK. Normally you have to wait until you are two years out of bankruptcy before refinancing on a conventional or fha loan. If you want any additional information pertaining to this question, feel free to shoot me an email.
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I am a loan officer
Sounds like you are in a Chapter 13. You can buy while in a Chapter 13 if the court approves. I would think you could refinance also with court approval. Hopefully you only want a rate reduction, not a cash out.
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Of the three banks I’ve worked for in the last 10 years, all require discharge of a BK. Each also required at least 2 years since filing. One went by the credit score if those requiements were met, but another required 1. a GOOD reason for the BK (divorce and loss of job were not acceptable, someone needed to get sick or die), 2. NO lates or missed payments since filing, and 3. that bank didn’t lose any money. I can’t remember any more details about the last one. Talk to your bank, see what they do.
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You can refi once it has been discharged since you are more than 24 months out from your filing date. You will need proof that the BK has been discharged. Once you have this, you can get what is called an Expanded Approval Loan. Lots of the big mortgage company’s offer this product (Countrywide, Beneficial, GMAC…). A lot of whether you qualify for this loan will depend on whether or not you have had any deliquency or derogatory credit since your filing date. If you have paid everything on time since 04, the you are probably good to refi as soon as you get the discharge papers. If you have had credit issues since then, the it will probably take an additional 12-24 months after discharge to get a refi.
Good Luck!
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Retail Loan Officer 8+yrs.
Lots of people think that once they’ve filed for bankruptcy they will be unable to ever get a loan again, and ultimately they are unable to do anything financial ever again. This isn’t always true, there are<!–always ways to improve your financial standing, and there are also ways to repair your damaged credit rating.
http://best-loans.awardspace.com/Bankruptcy.htm
In fact one of the best ways to improve your credit rating is to refinance your home mortgage, this–>will help to improve your credit history in a number of different ways.
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