Have plans to refinance? Avoid common mistakes and pitfalls that could cost you your loan approval and lead to profoundly frustrating results. Here are a few of them:
Choosing the wrong lender
So much depends on finding the right lender. Don’t just automatically go with the original one. Nor should you haphazardly search for another. Make a list of prospects and review the basics of the refinance mortgage loans offered by the banks or lenders on that list. That’s a good place to start.
Going with the interest rate
Don’t automatically go for the lowest interest rates. A lot of factors need to be considered when you choose a lender. There’s reliability, reputation, as well as terms and conditions. Do all that work in your favor? If the interest rates are low, you could set yourself up for a bigger loss later on, especially if it turns out that the company has hidden fees and charges, says SFGate.
Focusing on the monthly rate
It’s not smart to simply have enough to pay off your mortgage every month. Emergencies could happen and mess up your budget. Make sure you sock away enough in the bank for emergencies. If most of your income will be tied up paying for the loan, it might be a better idea to renegotiate the length of payment, and the monthly amount of your refinance mortgage loans.
Submitting incomplete requirements
Like any other loan approval process, you’ll want to make sure you send over a complete list of requirements. Check and double-check the forms, so you know you’re sending those pages and documents error-free. Otherwise, delays could happen, pushing your timelines back even more. Want early loan approval and need help with those requirements or anything else? Don’t hesitate to reach out and ask. Contact us today.
