Better preparations result in a better outcome – that is 100% true when you do home refinance, Scottsdale, AZ. Being ready is crucial to increasing your chances of getting a better deal. In other words, before you even sit down with your lender, you have to make sure all things needed are with you, ready for scrutiny.
Below are some things to do to be better prepared for a home refinance in Scottsdale, AZ:
- Know how much equity is in your home – it does not make sense to do a home refinance if your property is now worth less than it was when you started your mortgage. It is worth noting that consumer confidence has risen since the pandemic, increasing home equity. Thus, it may be an ideal time to refinance your mortgage. But then again, with your property, figure out the number and act accordingly.
- Assess your credit report – what lenders usually do to start with processing your application is check your creditworthiness. So, better check your credit score before that. You have to make lenders perceive you as worth granting a loan. It does not only increase the chances of getting your loan approved but to get the best possible rates.
- Determine your debt-to-income ratio – your DTI ratio should be 36% or less (although some lenders will go up to 43% – with some additional positive determinants). Note that lenders have not only raised their standards for credit scores but also for debt-to-income ratios. So, work on this before your application.
- Consider the refinancing costs – in general, refinancing a home costs between 3% and 6% of the total loan amount. But of course, there are several ways to reduce the costs, and your broker can help you with the best course of action to take. If you have enough equity in your property, you can roll the costs into your new loan.
Online looking for a reputable mortgage company to help you do a home refinance in Scottsdale, AZ? Talk to a mortgage expert at HomePlus Mortgage today.