Mistakes Not to Make

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Refinance with your existing lender without shopping around. Your current lender may not have the best rates or programs, and you will have to provide them with the same documentation as other companies. Save money and time by using a mortgage broker. Mortgage brokers work closely with a number of lenders which means they are able to shop the marketplace and find just the right loan for you.

 

Signing documents without reading them. Never sign documents in a hurry. Have your loan officer explain them to you and always get a copy so that you can review them. Do not expect to read all the documents during closing. There is rarely enough time to do that.

 

Not providing documents to your mortgage company in a timely manner. When your mortgage broker asks for your paperwork - Jump on it!!! They are trying you get you approved, not trying to hassle you. Not responding to documentation needs quickly can cost you money with higher rates if your lock expires.

 

Not getting a Loan Estimate of closing costs. Your mortgage company is required to provide you with a written estimate of closing costs. The Lender should provide it when you complete your application.

 

Not doing a break even analysis.  Find out what the total cost of refinance is and then figure out how much they can save you each month. Divide the total cost by the monthly savings to ge6t the number of months you will have to stay in the property to break even on your refinancing costs. If your refinance costs your $2,500.00 and you save $75.00 per month. your break even is $2,500.00/75 = 33 months, therefore you should refinance if you plan to stay in the house for at least 33 months.

 

Your home is the largest single investment you will probably ever make. In today's market is a wide array of mortgage possibilities designed to fit in a variety of situations. Use a professional mortgage banker or broker  to help avoid some of these common mistakes when you shop for a first or second mortgage, home equity loan, or other refinancing.