If you’re thinking about mortgage refinance or have had your application denied you should know that lenders are clamping down the qualification requirements for getting a new home loan. There are steps you can take to make sure that your application won’t be denied and that you’re not losing out on today’s best refinance rates due to your credit. Here’s an article from the San Francisco chronicle explaining how lenders are clamping down their standards for mortgage approval:
The pendulum has swung the other way. Banks have been blamed for being too lax in their lending practices in the past, haven given mortgages to millions that couldn’t afford them and contributing to the foreclosure debacle. Now, they are being cited as being too restrictive. Their conservative approach, critics say, is hampering the housing market from finding some stable ground, as willing buyers are being denied a mortgage.
The first thing you should do before applying for any mortgage refinance loan is take stock of your credit. Inaccuracies drag down your credit score and could cost you approval or result in higher refinance rates. The easiest way to check for mistakes is to print out all three credit reports and go through them with a fine-toothed comb. If you find mistakes, each credit bureau has a procedure for disputing errors.
Once you’ve been approved for a mortgage refinance it’s important to pay close attention to the closing costs to avoid overpaying. Getting a good deal in today’s economy isn’t about getting the lowest refinance rates, it all comes down to the origination fee and closing costs you pay because you have to recoup these from your lower payment amount. You can learn more about getting the best mortgage refinance rates without paying unnecessary fees by checking out my free Underground Mortgage Videos.