As with any other deals, there is no one-size-fits-all formula when it comes to mortgage refi Fort Walton Beach, Florida. Every individual is different and so are his needs. A particular deal might be favorable for one but not for the other. Thus, if you are planning to apply for refinancing, it is a great help if you seek the help of a professional – somebody who can make an assessment of your unique case and can effectively guide you through the process of mortgage application.
Before you sit down with your mortgage broker or advisor, it is imperative that you have some idea about what you are dealing with. Please note that getting a mortgage is one of the most important financial decisions you will ever make in life. Get it right.
So, let’s go back to the question at hand: Should you go for a mortgage refi Fort Walton Beach, Florida? Below are some factors that may increase your chances of getting approved (and getting a good deal) in your mortgage refinance application.
- How big or small is the debt you carry. Of course, lenders will assess your application qualification. One strategy they use in order to assess how qualified you are is by getting your debt-to-income ratio. This is done by dividing the amount you pay for all of your debts in a month by your income. Ideally, lenders want that ratio to be no more than 38%.
- You are a 20 percent stakeholder. The truth is, lenders, in general, favor those buyers who have at least 20 percent of the equity in the house. This is determined by dividing the principal amount that you are trying to borrow by the value of your house. When your LTV (loan-to-value) is at 80 percent, you have 20 percent equity position.
- How healthy is your credit score. Most lenders consider a credit score of 600 as their baseline for refinancing approval. Other lenders (e.g. a select credit union, local banks), however, have put the minimum credit score requirements at 720 or above. How is your credit score computed? It is based on these factors: payment history, utilization ratio, the length of credit history, new credit, as well as the types of credit in use.
If you have more questions pertaining to the three items above, contact our experts at HomePlus. The mortgage team is readily available to answer all of your mortgage inquiries.
For professional help on mortgage refi Fort Walton Beach, Florida, contact us at 800-958-7587 (PLUS).