Here are five simple and easy steps to help you acquire the best Texas mortgage refinance loan for your needs.
Step 1 Determine how long you’ll hold on to the mortgaged property.
The length of your stay will have a substantial impact on your future financial situation. It will help you determine the best rates and terms for your Texas mortgage refinance loan. It will allow you to determine, for instance, if you’ll have adequate cash to settle the final balloon payment for your loan.
Step 2 Shop and compare.
One huge mistake made by many first-time borrowers is forgetting to consult their first creditor for mortgage refinance rates. It is, after all, possible that you’re acquiring your second mortgage from the same lender. He could give you lower rates than usual. Your first mortgage might simply have been a consequence of bad timing; inflation, bad market trends, and other economic crises might have been why your creditor have charged you with a high interest rate.
Of course, if your first lender hasn’t anything good to offer then that’s the time you should approach other mortgage providers.
Step 3 Work on pre-qualification.
Be aware that becoming pre-qualified is different from becoming pre-approved. Pre-qualification simply means ensuring that you meet every possible requirement of your future mortgage provider.
Start by determining the ideal type for your second mortgage. What kind of mortgage this time around would best match your financial situation? Would you do better with a fixed interest rate or do you prefer an ARM?
Consider your employment history. While creditors certainly don’t require you to have a Best Employee of the Year award, it would help if you can show to them that you’ve been with your current employer for at least two years. It proves income stability and which to them guarantees consistent and on-time payment. As for those who are self-employed, creditors would also prefer if you’ve at least 25% ownership of the business.