Mortgage refinancing can save you a lot of money if you do it correctly. Doing your homework and researching mortgage offers will help you avoid many of the mistakes homeowners make when refinancing their mortgage loans. Here are several tips to help get you started refinancing your mortgage loan.
How to Refinancing Mortgage – Check Your Credit First
One of the most important aspects of your new mortgage is your credit score. Your credit score is also called your FICO score, and is based on the contents of your credit reports. If you have errors or negative information such as judgments, write-offs, or bad debt in your credit reports your credit score will suffer. Before refinancing your mortgage request copies of your credit reports from each of the three credit reporting agencies and carefully review your records for mistakes. If you find mistakes you will need to dispute the errors with each credit agency and allow enough time for them to correct your credit report.
How to Refinance Mortgage – Comparison Shop
Careful comparison shopping means comparing mortgage offers from a variety of mortgage companies and brokers. When you compare mortgage offers it is important to use the Good Faith Estimate and not rely on the Annual Percentage rate to choose a lender. The Good Faith Estimate outlines all of the charges associated with your mortgage and who the fee is paid to. Mortgage lenders are legally obligated to provide you a copy of the Good Faith Estimate after receiving your application; however, most mortgage companies will provide you a copy simply by asking.
How to Refinance Mortgage – Beware Hidden Fees
Mortgage companies and brokers have clever ways of disguising their fees and markup of your mortgage rate. Doing your homework before mortgage refinancing will help you avoid paying unnecessary fees including the retail markup of your mortgage rate. You can find more tips on how to refinance your mortgage while avoiding costly mistakes by registering for our free mortgage tutorial: “How to Refinance Mortgage“.