Refinancing? I'll Show You How To Get The Best Deal - Ever!!!
Having been in the mortgage industry for about 16 years, I have seen every scenario imaginable - more than once!
* people getting an interest rate they didn't deserve...
* paying fees that could have been avoided...
* not paying off debt when they had the chance to do so...
* not being presented with all options, etc.
What I am about to do, is share what I have discovered over the years - basically by my own desire to help my clients to get the most out of their refinance!
I will also show you how this can be...
" The Last Refinance You Ever Need To Do "!
How's Your Credit?
Before you do ANYTHING, get an answer to this question!!!
Because, if the answer is not good, you can save your self a ton of work, worrying, agravation, frustration, time and money by stopping at this point!
So, where ever you bank, if you have a friend behind the counter, talk to them! Tell then that you might be interested in refinancing but you would like to check out your credit first.
Depending on what it looks like, you will know if you can move forward or work on getting your credit fixed. If it does need some repairing, here are some helpful hints...
FICO SCORE...obviously the higher the score, the more options will be available to you. Push to have at least 620 minimum - ( This being your middle score rated by Transunion) There are 3 reporting agencies - Transunion, Equifax & Experian. Your middle score is always the one that is used.
Obviously, try not to have too many open accounts and always try to pay a little more than that minimum payment.
If there are any open Suits, Liens or Judgments and you need these to go away in order to raise your scores, find a way to pay them all off.
If your scores are low because you have several accounts that are damaged because of lateness's, I had assisted many of my clients in getting a Secured Credit Card from their bank that is tied to a savings account. Meaning, what ever amount you have in the particular account, that is your credit cards limit. By getting several of these (it can be a limit of only $500!) and making immediate purchases - " I used to tell my clients my shirt size" - and make on time payments, you can see an increase in your scores in as little as 3 months.
STEP 1! "Choosing The Right Bank "!
Do your homework! Just don't take your family, friends or co-workers advice. Remember - they are not the one who will be making your mortgage payments!
Obviously, the best source of information is the Internet and start by checking for the obvious...
low cost or no cost loans, etc.
Look for anything that just doesn't seem right or make sense. Don't fall for the fast talking, slick moving loan officers!
Sign here! Sign here!
STEP 2 - "How Much Is Your House Really Worth?"
Is your property - under water?
Or, Are You Sitting On A Pile Of Cash!
Once again? Do your homework! There are plenty of sources available to you to get an idea of the value of your property - like http://www.zillow.com/
More importantly, check our your own neighborhood... Any recent sales? Was their house similar to yours? If so, how?
What kind of shape was it in? Property size? New siding & roof? Basement? Gargage? All of these variables and more, play a big part in determining the value of your house.
Another source of invaluable information is your local real estate office. Go make a friend! You'd be surprised to find how eager they are to talk with you!
Some Helpful Hints!
In order to get the highest appraised value of your house, it needs to be in it's best shape possible! Here are some suggestions to achieve this. Man the stories I can tell you... Ok, you convinced me - but just one - because I have hundreds!
I walked up to the front door of a house that didn't look too bad on the outside. I was greeted by the husband and was led into the kitchen so we can sit and talk. His wife then came in, introduced her self and asked if I'd like a drink of soda. Yes please I said, that'll be fine. She walked over to the opposite end of the kitchen and shouted into the basement for her son for a bottle of coke. I then saw the woman bend over and grab the bottle from her son - through a "hole in the floor"!
So, where was I?
Consider it to be folks, more of a check list;
Let's talk about the outside first...
What kind of shape is it in? Need a new paint job? How are the leaders, gutters, roof, windows?
Lawn...Get It Green! Bushes, shrubs, trees - anything that needs pruning - Get 'er done! ( Yes, I do like Larry the Cable Guy!)
Have a pool? Clean it!
Garage? Once again, clean it up, organize it. Not only will this make your wife happy, but you'll be able to find what you've been looking for all these years, but were never able to find it!
When was the last time you painted. If you don't remember and it looks like you don't remember? Paint it!
Carpets...I'm not suggesting you put down new rugs. But if they do look that bad, rent one of those shampoo machines from the supermarket.
Any cluttering? Get rid of it.
Kitchen cabinets...if they're old, polish them.
Appliances - Washer, Dryer, Dishwasher, Refrigerator, Hot Water Heater, Central Air Conditioning Unit, Oil Burner - if any of these are fairly new - within 5 years - point this out to the appraiser.
Please keep this in mind folks...Depending on your area, your property value may still be in a slump. So, you need to do what ever you can to make your house shine above everyone else's. You need to do what ever is possible to impress the appraiser so he will take EVERYTHING into consideration and give you the highest value possible.
Step 3! "Get Your Paper Work Together & Organized"!
Once again, here's your check list...
3 months of pay checks...
3 months of bank statements, including any retirement accounts...
last appraisal report...
Home owners Insurance Policy...
W 2 or 1099 statements for the past 2 years...
If any Bankruptcy's, all discharge papers...
Step 4 - "PAY OFF EVERYTHING"!!!
This Is Something That Many People Don't Take Advantage Of or Aren't Told That They Can!
PAY OFF EVERYTHING!
Got outstanding credit card debt? PAY THEM OFF$
If you have outstanding Suits, Liens,Judgements or Collection accounts that you didn't need to pay off in order to qualify for the loan? PAY THEM OFF$
(AFTER VERIFYING THAT THEY ARE FOR REAL!)