How To Better Your Odds Of Being Approved For A Refinanced Mortgage
If you already have a mortgage on your home, but you would like to have it refinanced, you will want to do everything you can to prepare before you fill out the application for home mortgages. This way, you will have a much better shot at being approved. Here are some of the things you need to focus on:
Pay Off Excess Debts
The more debt you have, the worse your debt-to-income ratio becomes and this can severely impact your ability to obtain a new mortgage for your home. Even though you have already been approved for a mortgage once, if your income or debts have changed since you were first approved for the mortgage, you might not get a second approval as easily. One good thing to do is to pay off as much debt as possible, especially if you have credit cards with high balances on them.
Check Your Credit Reports
It is important to remember that there are a couple of credit reporting agencies out there and you will need to obtain a copy of your report from each one. This can usually be done once a year, through each company, without having to pay anything for the reports. Double check them to make sure that there are no errors reported, such as late payments when you know that you have always paid on time, or loans that you do not recognize. Some people have found that they have had their identity stolen and credit used once they pulled and reviewed their credit reports. If there is anything that you need to dispute, you will want to do that right away, as it can take several weeks for issues to be cleared up.
Freshen Up Your Home
Basically, you want to do simple things that can really make your home have a much better appeal to it, as this will help with the value of the home. The more value you have in your home, the easier it will be for a mortgage company to approve you for the refinanced loan. Try adding a fresh coat of paint both inside and outside of the home. Update the light fixtures and replace your faucets with something newer.
Once you have done those things, you can start talking to a refinance company to learn more about getting the application process started. Make sure that you are going through a lender you can trust for the best results.