If you’ve been putting off mortgage refinancing because you’re concerned that you might not qualify you should know that lenders are ratcheting up the requirements to qualify for a new home loan. In a recent survey of lenders 40% reported raising their qualifications for mortgage refinancing. Here’s an article on MortgageLoan.com explaining how the changes are affecting homeowners looking to take advantage of today’s best refinance rate on their mortgage refi.
Mortgage lenders have continued to tighten consumer credit over the past year, although not as aggressively as in the past three years. A survey of the nation’s largest banks, reported today by the Office of the Comptroller of Currency, found that 40 percent of those reporting tightened their credit standards for mortgage loans over the past year. Eight percent said they loosened their mortgage credit standards, while the rest are unchanged.
If you’re concerned that your credit score could be preventing you from mortgage refinancing there are steps you can take in the short-term to make sure there are no mistakes in your credit reports. Several years ago Congress passed a law requiring the three credit reporting bureaus to give you a free copy of your credit report once per year. You can request your free copy by visiting the website AnnualCreditReport.com and carefully reviewing the reports for errors.
Finding the right broker to arrange your refi goes a long way to qualifying but also avoiding lender junk fees and unnecessary markup. Many homeowners think comparing refinance rates will find them the best lenders; however, this refinancing strategy often results in overpaying thousands of dollars at closing due to lender junk fees.
You can learn more about finding the right person to get you qualified for mortgage refinancing without paying unnecessary lender fees by checking out my free Underground Mortgage Videos.