How to get refinance approval:
If you’ve already made it through one of the most difficult challenges of purchasing a home, the last thing in your mind could be the idea of refinancing your mortgage. Having the option to lower your payments by a few years and your mortgage can be an excellent way that you can save money especially over a 20 or 30 year term. If you were only approved for a high-interest mortgage, you could substantially lower your payments over time through the reapplication process. If you’ve decided that you would like to pursue the refinance option, here are some of the top ways that you can improve your application to get refinance approval:
Consider your current credit score:
after you have determined the current value of your home and shop for a great mortgage rate for refinancing, you will need to look at your current credit score. If you have been paying your mortgage on time and keeping your debts down, you could be in the perfect place to refinance. Learn your credit score from a credit reporting agency and file any disputes as necessary if there are debts you have repaid or errors in reporting.
Gather up paperwork required for refinance:
gather together statements from your current mortgage, pay-slips, credit card statements and any other income reports such as PAYG Statement/Group Certificates that you may have. These are items that your lender will need over the course of the application process.
Prepare for some extra fees: setting aside some extra fees for your new refinance is important. It’s likely that you will have to pay some existing lender discharge costs, mortgage insurance (if you borrow more than 80% of the valuation and new lender fees in the refinancing process. These costs can be added to the new loan depending on the lender that you choose in the refinancing process.
If you would like to learn more about how to get refinance approval contact us today.