First, you need to know whether you’re a perfect candidate to get the refinance home loan or not. You could decide whether you’ll get it or not simply just by looking at yourself. Answer these questions below, and you’ll find out about it:
- Are you consistent in paying your mortgage?
- Do you know when is the right time to delay gratification?
- Do you have a good credit score?
- Is your house in a good condition?
- Do you have savings? No matter how small it is?
If you answer ‘YES’ to all of those questions above, then congratulations! You’re just approved to get the refinance home loan.
But what if you don’t?
Well, don’t be so sad about it. Just ask your lender how you could qualify for it and then take your chance!
People use refinance home loan for many reasons. Some of them use it to get a lower mortgage rate, some of them need an emergency cash to pay the hospital bills or college fees, and so on. What is your reason? You need a solid reason to get the refinance home loan. Why? Because you need to control where the money goes and how you will pay for it.
After you get your refinance home loan, you have to be careful to pay it on time. You need to keep your credit rating in a good spot and not make it bad by delaying the payment.
So, how this refinance home loan works? Well, you need to know that your house value will depends on CMA or Comparative Market Analysis. Your home equity will increase when the CMA is high and your mortgage balance low. When this happen, you could switch to other mortgage rate or even get the cash from it.
To increase your home equity, there are several things you can do:
- Consider to getting a short mortgage term
- Improve your house
- Pay a higher down payment
- Give the extra principal payment
After you get the refinance home loan, it’s time to pay your old debt. Start by paying off your previous mortgage loan, and spend the rest of it for your children’s college fees, retirement funds, monthly expenses, monthly mortgage bills, and more. Plan it good and be wise to use the money because as soon as you get the refinance home loan, you’re just put your house at stake. Don’t let the lender get away with your house!
What should you do now?
After you find out whether you could get the refinance home loan and making some calculations about where and how you will be spend the money, it’s time for you to act! Start by improving your house and selecting the best lender company to dealing with your refinance home loan. One thing you need to be aware is that there are so many companies that are scam. Do your research and stick to legitimate and well-established company only!
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