Refinance | California Current

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.

(8 votes, average: 4.5 out of 5)

Loading ...

You turn on the television and you glance at your local paper - one thing that we can’t seem to escape is the updates and breaking news on the current housing crisis. It has affected the entire nation, but here in California we are definitely hurting more than others. Well, I’m not one to break trends so here is my little blurb about the current mortgage crisis here in California.

According to the data and statistics collected by DQnews this month, an estimated 32 percent of homeowners in default are able to escape the foreclosure process by refinancing, selling, or bringing their payments current. One year ago, the statistic was more optimistic as 52 percent were able to avoid a foreclosure. A foreclosure is quite a shattering experience to go through, but when only 32 percent of homeowners are able to pick themselves up - those 68 percent start to feel that they are in the majority and feel a little more “normal”.

This trend in defaulting is quite a worrying factor as the stigma of a foreclosure is transforming into something that is actually “common” and maybe even “necessary”. Unfortunately, this is where the snowball really starts to grow.

What It Means for You

To feel the effects of the housing crisis, you don’t have to have missed a payment or lost a job - instead, you just have to live around those who have. You didn’t have to take a risky loan or lived beyond your means - again, you just have to live around those who have. When they go into foreclosure and can’t pick themselves up, they have effectively stripped equity from your home and the local community.

Now what?

In this market, if you are looking to sell your home - there are obviously a lot of opposing forces to overcome. It is more important than ever to make sure you have an agent who is experienced and comfortable with your target audience. The best Realtor in Los Angeles referred to you by a friend would be nice, but unnecessary, if you lived in the Bay Area. If you are simply trying to evaluate what to do with your current mortgage, speak to a loan consultant earlier than later. Time is one thing that is on your side before you are in trouble - shop early and do your research beforehand.

Source: Dqnews

(9 votes, average: 4.89 out of 5)

Loading ...

Like our blog?