How to Refinance a Mortgage

You'll have to understand the requirements for mortgage refinancing before applying for a loan:

Credit Check

When you apply for any loan, the lender will check your credit score and credit history to determine your debt to income ratio.

If you haven’t checked your credit in a while, you should review your credit reports to get an idea of the refinancing rates that you’re likely to qualify for.

Reviewing your credit also helps you check for any errors so you can dispute them before you apply for a loan.

If you have bad credit, it may be tougher to get a new home loan, but there are loan programs that can help you recover your credit.

Loan Type

After checking your credit, figure out what loan type you’re interested in.

Refinancing allows you to change the terms of your mortgage so if you currently have a 30-year loan, consider whether you want a new 30-year loan, or maybe even a 20- or 15-year one instead.

A shorter term means higher monthly mortgage payments, but you’ll pay less interest in the total life of the loan that much sooner.

Compare Rates & Terms

Figuring out who has the best refinance rates may be a challenge, but it will likely save you money.

To make it easy, you may want to start with your current lender to see what kind of rates they’re offering.

After that, you can expand your search to other options.

Whoever you decide to go with, make sure you check details like:

• Minimum credit score requirements

• Income requirements

• Loan-to-value ratio requirements

• Closing costs

• Loan repayment terms

Applying for a Mortgage

It’s time to start the application process after finding the lender of your choice.

Applying for refinancing is like applying for a mortgage, so be prepared to share personal details like about your income, assets, debts, and so on.

You’ll likely need to provide the lender with bank and credit card statements, pay stubs, investment account statements, and other documents.

Having your home appraised may be part of the process because that will help the lender determine what your home is worth when underwriting a new loan.

Finalize Loan Terms

After applying and getting approved, you’re ready to seal the deal on your new loan.

The lender may give you an opportunity to lock your rate for a fee, so your interest rate doesn’t change before closing. If you suspect a higher interest rate, it may be smart to lock your rate.

At Omni Fund LA, we’re completely transparent with our clients throughout the lending process. At any point time, if you have questions or concerns, we can answer them to ensure you’re comfortable going forward with us.

We understand that investing your money is a big deal and we do what we can to guarantee your satisfaction through our trusting services.