If you’re considering mortgage refinancing there are several things that can prevent you from taking advantage of today’s best refinance rates and sideline your application. While your credit score determines the mortgage rates you’ll be quoted there are situations that could result in a denial from the lender. Here are several tips before you refi to make sure your mortgage refinance application process goes smoothly.
A low credit score and lack of income aren’t the only things that can keep you from qualifying for a mortgage. Here are five other things that can sink you as well.
In addition to checking your credit reports for mistakes, you should pay close attention to the broker fees and closing costs you’re being charged for mortgage refinancing. One of the most common mortgage mistakes is overpaying the loan origination fee for your broker’s services. How much should you pay for the broker’s origination fee? Lender fees and closing costs like this one vary from one lender and broker to the next and are negotiable; however, one percent is a perfectly reasonable amount to pay your broker for arranging your refi.
There are also a number of junk fees that do nothing but increase your closing costs, boosting the lender or broker’s profits at your expense. One example of a typical junk fee is the mortgage rate lock fee. No lender charges a fee for locking in a mortgage rate so if your broker is quoting you a rate lock fee it’s a sure sign you’re dealing with a dishonest loan originator.
You can learn more about refinancing your mortgage without paying unnecessary fees or markup by checking out my free Underground Mortgage Videos.