Refinancing your current mortgage loan with a new one can allow for many different benefits.
- Better rate
- Shorter term
- Lower payment
- Cash-out on equity
- Locking in a fixed rate from an adjustable rate
- Last 30 days of paystubs
- Last 2 years of W-2s
- Award letters (social security, pension, disability, etc.)
- Last 2 months of bank statements (all pages) for checking and savings
- Last quarterly statements for any retirement and/or investment accounts
If You’re Self-employed, Own Other Property, Or Make The Bulk Of Your Income In Commission
- Last 2 years personal tax returns and all schedules. Business returns could be requested additionally.
- CPA to provide a YTD Profit & Loss statement for self-employed borrowers
- Current mortgage statement
- A copy of your homeowner’s insurance policy and contact information for your insurance agent
- A copy of your property tax bill
- A copy of your driver’s license
- Bankruptcy discharge paperwork (if applicable)
- Copy of divorce decree or court order to support alimony and/or child support. Whether receiving or paying
How To Get A Great Rate
- Improve your credit score. Paying bills on time is reflected in your credit score and your credit score is a piece of what determines the risk of your loan to the lender. The higher the number, the better the rate.
- Did you know that a larger down payment can help you get a better rate? The larger the down payment, the lower the risk of the loan. This equates to a great rate.
- Ask your loan officer what you could do to get the best rate available.
Credit Score Basics
How is my credit score calculated?
- Continue to make rent or mortgage payments where you are currently living.
- Keep your payments current on all debts.
- Maintain status quo with spending habits.
- Consider enrolling in credit monitoring service to monitor your credit as soon as you decide to buy a home.
- Stay employed with the company on your application or if you must change, keep it in the same line of business and always speak with your lender prior to leaving.
- Don’t make any new major purchases.
- Don’t apply for new credit.
- Don’t open new credit card accounts.
- Don’t transfer credit card balances.
- Don’t take out any other loans.
- Don’t open a new cell phone account.
- Don’t leave your job.