![]() ![]() When you got your initial mortgage, chances are good you were only allowed to borrow a specific percentage of the home’s value. A lower DTI means you’ll have an easier chance of getting approved and more lenders will be willing to offer you a competitive mortgage refinance rate. ![]() That’s the monthly debt payments you have relative to earnings. That’s because lenders will decide if you’ll be approved for a refinance loan based on your debt-to-income ratio (DTI). Speaking of repaying debt, it’s a good idea to pay off (or at least pay down) as many other loans as you can before applying for a refinance loan. If you see your score isn’t very high and there’s no inaccurate info on your credit report, you can also work on taking steps to raise your score, such as paying down debt. When you get a copy of your credit report and score, make sure there are no errors on your report that could cause your score to be lower than it should be. It will also determine what rate you’re offered - and how much you can save on your current home loan. ![]() Your credit score will determine if you qualify for a refinance loan. In fact, if you’re thinking about refinancing, you’ll want to make sure to do each of the following steps to ensure you get the right home loan for you. They’ll then begin repaying the new mortgage debt, which hopefully has better loan terms.īut, while the process can be straightforward, there are still a lot of steps involved to do it right. If approved, they’ll use the loan proceeds to repay their old loan. Homeowners who already have a mortgage will apply for a new refinance loan, either from their current lender or a different one. Refinancing a home can help property owners reduce the cost of their mortgage. ![]()
0 Comments
Leave a Reply. |