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Although refinancing has taken a step back due to tightening guidelines, many people are still looking for ways to lower their rates or “fix” their ARMs. Here are four things I recommend you do beforehand so that you can find the best deal when refinancing.

Have a Credit Report Ready
At this point in time, you’re primary focus is not going to be on the score itself. Instead, you want to make sure all the details and reported accounts are 100% accurate. Having a credit report beforehand will give you an advantage as you now have time to dispute any mistakes and also take action to perhaps raise your score. For this initial credit report, you don’t necessarily need a report from a mortgage company. In this case, you can go to http://www.annualcreditreport.com/ for you free annual credit report; it won’t give you a score, but it will give you an idea of what is being reported and a chance to catch any possible mistakes

Find Out What Your Home is Worth
One of the biggest factors affected by this housing situation is the issue of declining values. Before starting the refinance process, you want to get a general idea of your home’s true value. When I say “true” value, I mean get a substantiated comparison check - not just a value off the top of your head or the value from a few months ago. There are sites that will estimate your value, but the best thing you can do is to look at comparable sales in your area. Have a mortgage consultant or appraiser take a quick look at recently sold homes in your area that match your property. Finding this estimate is important because lenders are looking heavily into the amount of equity invested in your home.

Organize and File
During the refinance process, you want to focus on getting what you want and having the process as streamlined as possible. That being said, nothing slows down the process more than being frazzled and trying to find lost paperwork. From bank statements to pay stubs, organize these important documents as soon as you can. File them in a folder and make copies so you can hang onto the originals. This commonly includes pay stubs, W-2s, tax returns, bank statements, lease agreements, and retirement savings. Lender guidelines will vary, but generally you want to document sources of income and assets with some kind of paperwork.

Go Shopping
First of all, ask trustworthy friends or family for solid references - be sure to ask how their experience was and if they would go back to them in the future. If you found a few brokers or banks you would like to choose from, compare what they each have to offer. While rates and fees are important, make sure these individuals are ones you can work with. If you do end up deciding, keep the other “potentials” in mind - you never know when things might go sour and it will help to have these backups.

By taking these steps, you will simplify the refinance process on your end greatly. Want more information? Here’s another post about qualifying for a home loan in today’s market.