Why It’s Still a Good Time for a New Mortgage or Refinance
I have been thinking lately that I don’t want to miss out on some real values in real estate because of my financial situation. I’ve done a lot over the past two years to improve how my personal financial statement stacks up when I finally apply for a mortgage and I definitely think I have made a few key improvements which matter to lenders like:
- Shown a track record of regular employment, and have been at my current job for over two years
- Reduced my Debt to Income ratio by both decreasing my debt and increasing my income
- Have at least 10% if not 20% for a down payment, depending on just how much of a “fixer” I want to buy
You guys know I really love real estate. I check the MLS listings on a daily basis. I try to figure out all kinds of scenarios that don’t necessarily apply to me, like whether I would be eligible for a refinance if I did have a home. And the good news is that completing a California or Florida refinance is not as arduous as it was even two or three years ago. The best way to find the most competitive mortgage or refinance rates is to do your own research and ask the tough questions. If you know what all of your costs are and have accounted for contingencies such as not being able to close within the original estimate or deciding to switch from a 30-year to a 15-year loan, then you will be able to complete a refinance in a reasonable amount of time and get the best rate possible. In the case of some first-time homebuyers, you might find a more favorable rate awaits you after a year or two of your first home purchase. Your credit history will have improved considerably with regular, on-time mortgage payments, and your score should have improved as well. Refinancing can seem like a long process, but when you consider the possibility of immediately saving thousands of dollars, both in the near and long-term, then refinancing at historic low rates becomes a no-brainer.
Have you done a refinance lately? What was the best part of the entire experience? Any tips to share for newbies considering their first refinance?