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Home Loan Remortgage
Applying for a home loan remortgage isn't really that difficult , if you have already applied for a mortgage in the past then the process is pretty much the same. If you are applying through a new lender than you will be asked pretty much the same questions such as, your proof of earnings or income, any debts, and a list of all your expenditures. Obviously the lender will ask to review your application and any other paper work that is required.
A valuation of your existing home will be required and in some cases , depending on the surveyor who my simply valuate your home based on external values which may be all that's needed, but in most cases they may decide to do a full house valuation. Like any lending firm there are certain fees involved, the most common is paying a valuation fee, or a lenders charge loan processing fee. One will need to consider that fees and charges will vary from different lenders. The time it will talk for your remortgage in general will take at least 5 to 6 weeks this takes into consideration the policies of the lender and certain legal requirements surrounding the property that is being remortgaged. There are lenders who will speed up this process in a matter of a week this is called rapid remortgages.
Most people who apply for a remortgage will often upgrade there home in the hopes of getting a good price in terms of valuation. And in some other cases they will ask for a remortgage to fund the upgrade of their property. This is the main reason people ask for a remortgage is for home improvements. But people need to consider the risks before indulging in such ventures and weather they are able to meet the terms and conditions of the loan.
There are a few things that your bank will require from you in order to meet the standards of applying for this type of loan here is a check list that most banks will require from you.
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Your Remortgage Checklist
1 :First you will need to have a steady income coming in in order to keep up payments on the house.
2: A income sheet showing your monthly payments for your original loan and if it is significant they will compute this into a debt ratio.
3: There also needs to be some type of equity in your home this is likely to be what most banks will require.
4: Next the bank will do a credit check to see any cash statements that may effect your chances of getting a remortgage loan.
And if everything seems to be alright with the bank and there are no reasons to deny your application the the bank should have no problem giving you a home loan remortgage.
Things To Concider
Because this is a second loan you will want to consider the negative as well as the positive aspects of doing a loan like this. Obviously there are positive aspects in terms of improving and renovating your home in the hopes of increasing it's value, but the downside to this can be that your interest rates will increase as well as your remortgage fees, but if you talk with your bank manager about a (cash out) option it my help you drop those interest rates down to a realistic level. Do your homework and do a search online for a good reputable remortgage broker there maybe some banks that will be willing to give you a remortgage even if you have a poor credit rating so don't give up until you have done your research and done it well.