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Mortgage Refinancing Tips   

With the crisis in the mortgage industry in the United States over the past few years, there are new guidelines and documentation required to get mortgage loans.  You may be wondering what it takes to get a mortgage loan for a refinance now.  Rather than starting out frustrated, following these tips may help you make it smoothly through the mortgage refinancing process. 

First, you should decide on the purpose for your mortgage refinance.  This will help to determine the length of time it will take to complete the process.  For instance, refinancing in order to lower your payment will take less time than if you want a cash-out refinance to remodel your kitchen or use for some other current expense.  If you want cash out of the loan, you will need an appraisal of the house and it must come in at a certain amount above the value of your current loan.  This appraisal process will extend the time it takes to process the loan.   

Next, by gathering all of the necessary documentation in advance, you can help your mortgage refinancing go much more quickly.  Each time your loan officer has to ask for a forgotten document and you have to take the time to fine the document and get that to him, you may not only prolong the process, but may not be able to get the loan you want.  You will need documentation to show your income, such as the past 2-3 month’s paycheck stubs.  You will also need to verify how long you have worked with your current employer to show job stability.  A current appraisal of the home by a certified appraisal that the lender chooses and the past 2-3 years income tax returns will also be needed.  You can talk with your lender to find out exactly what they will need and gather it before you meet with a loan officer.  This will substantially speed up your process.   

To qualify for a loan, you will need to have a credit report.  Your credit history is one of the biggest determining factors when it comes to mortgage refinancing.  There are a few options for bad credit mortgage loans, but you will have many more options if your credit is good.  It is important for you to understand your own current credit standing so that you will be prepared with the necessary documentation that is going to be required.  If your current mortgage payment is part of your credit problem, there are government loan modification options that may help you with obtaining a bad credit mortgage refinance. 

If you analyze the purpose for your refinance, prepare by gathering the required documentation, and understand what your current credit scores and history, you should be able to complete the mortgage refinancing process in a timely manner without a lot of frustration and stress.