15 Apr 2016

3 Minor Actions that are Actually Major Refinancing Blunders

It’s only natural for Utahns to refinance their mortgage these days — as a matter of fact, it’s the reasonable thing to do under the right circumstances.

While not everyone is sold that rates of today are attractive enough to pursue a refi, it does makes sense to reset the clock and take an ARM if you’re moving in a few years. Also, if the break-even point is reasonable and math tells you you’re going to save more with a fresh rate and term than sticking to current loan, then nothing should stop you to refinance your mortgage in Utah.

But wanting to refinance is one thing, getting approved is another. Just because it’s a trend doesn’t mean lenders are mindless giving away their stamp of approval. As you prepare your application to be irrefutable, your seemingly inconsequential actions might sabotage your refi bid.

Listing Your Property, then Refinancing Your Mortgage

One of the best way to turn off a lender is to refinance the very property you just tried to resell. No financial institution would be thrilled about the possibility of your reselling the real estate the first chance you get and paying off the loan early.

Refinancing without Being Steadily Employed

Lenders care about your job history. It basically tells them how steady your “steady” income really is. It’s easy to claim that you can maintain repayments without missing a month or two, or completely defaulting, but your history of employment may say otherwise.

Unless you can prove your current employment is secure, and you can absolutely make the money you’re making, a bad unemployment picture may get in the way of an approved refinance.

Saving Your Cash at Home

When it comes to providing proof of your asset reserves, it must be kept in a verifiable account. A jar, piggy bank, and under the mattress are no acceptable places to save your money. Without having any verifiable account to show for your savings, you might as well not apply for a refinance to begin with.

Successfully getting that refinance is never an accident. You must by all means be in particular with every aspect of your credentials — because lenders are.

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