When you re-finance, you actually pay off your existing mortgage & eventually create new one. You may also have the freedom to combine both of your first mortgage and of second mortgage into your new loan. Re-financing may also serve as your reminder of what you’ve went through just to obtain your original mortgage, since will encounter same procedure and the same cost for the second time. Home mortgage re-financing can be a tough and complex financial decision in most circumstances, especially when the interest rates are enticing. You have to consider several factors to make your re-financing worth your decision. So to better help you with your home mortgage re-financing decision, the following are some of the helpful tips that you can follow:
· Get a pre-approval
Seller typically prefers buyers who are preapproved by a reliable lender and has a preapproved mortgage (making their offers even more attractive). With a preapproved mortgage, a loan officer from the bank or a mortgage broker will pull significantly your credit report and will submit supporting documentations on their ‘automated underwriting system’. It allows bank to give you a more accurate term based on your debt obligations, actual credit scores and income, rather than relying on your estimates. This will also help you get ahead of the tedious process when you already go into contract, thus expediting the procedure.