Getting Rid Of Mortgage Insurance:
Do you currently have a FHA mortgage and are you looking to refinance the mortgage to get a lower rate and/or possibly get rid of the Mortgage Insurance (MI)? If so there are a few things you need to prepare before you move forward with a refinance. If you stick with the below process it will help make your refinance a much more efficient process and you just might end up with a lower mortgage rate than you thought.
Your First Step:
First have you paid all your bills, the ones listed on your credit report, on time over the last 12-24 months? Including the mortgage? Having a strong payment history is important however if you’ve missed a payment or two there still are some options for you. If you’ve missed 4 or more mortgage payments in the last 24 months and have other late payments on your credit cards or car loans you may want to wait a little longer. Discuss your situation with your Loan Officer so he can find you a proper plan and solution.
Do a little research online as to the value of the property. There are many online services out there and the most popular one seems to be Zillow. Keep in mind that your appraised value could be vastly different that what an online appraisal site has but at least a website like Zillow will give you a good idea. If you live in an area where homes are somewhat similar Zillow seems to be a bit more accurate compared to areas with different styles and sizes of homes.
Third; know your income. Sounds basic right but many people only know what their net income that’s paid to them each week. Mortgage companies use your total gross income which is higher (self employed people qualify on net income). If you are a W-2 employee take a look at your pay stub to find out what your base income is (look up the gross amount; keep commission and bonuses separate). If you are self employed then pull up your tax returns for the last two years and find your net income (not gross).
Lastly; establish a realistic objective. Is it to get rid of the Mortgage Insurance (MI)? Are you looking to do a streamline FHA refinance to get a lower mortgage rate? Whatever the reason is make sure it’s realistic and be open to suggestions from the loan officer.
Getting Your Quotes From Reputable Mortgage Companies:
Once the above is in place you’re ready to obtain quotes. Be sure to obtain 2-3 quotes from reputable mortgage companies (preferably mortgage companies that have an A rating or higher with the Better Business Bureau). Once you have your quotes make sure you ask a lot of questions and don’t hesitate to ask a question two or three times if needed. A Loan Officer should always be willing to take the time to answer a clients question. Once you’ve located your lender it’s time to complete an application and gather your documentation. The general time frame is about 4 weeks however some lenders take 60-90 days so make sure to ask how long it takes to close.
JB Mortgage Capital, Inc.:
If you would like a quote from a top rated lender that offers industry low mortgage rates and top notch customer service than call us directly at 1-800-550-5538. Loan Officer Kevin O’Connor has over 14 years of experience and will help you with all your mortgage needs.