Everything You Need To Know About Loans
|  Loan Dictionary  |    |  
5 Tips For Hassle Free Home Refinancing
By EchoBay Loans Staff Writer

Have you ever found yourself regretting a situation you'd gotten yourself into, saying "I wish someone would have told me that before…"? Considering that your home is more than likely your biggest asset and your mortgage is probably your biggest expense, you don't want the above scenario to apply to your home refinancing experience. If you're thinking about refinancing your home in the near future, you'll want to follow our tips and guidelines to ensure that you take the easiest road to getting the best deal possible.

Tip Number 1 - An Informed Consumer Is Less Vulnerable
Of all the tips we could ever give you, the most important one would consist of one word - "research".
Research, research, and then go back and research some more. You're going to want to research all of the different types of home refinancing options that are available before you even talk to a lender or apply online. This will allow you to verify the facts and understand which refinance product is best for you, rather than having a lender try to sell you on which refinancing product will gain them the highest profit. Find out what fixed-rate means, what a cash-out refinance is, and what the different loan terms are. Then compare the financial products available to what your needs are and find the best match. Then, and only then, contact a lender to apply for the home refinancing loan that's right for you.

Tip Number 2 - Don't Suffer From Buyers Remorse
Compare interest rates in the brick and mortar world and online. There's nothing worse than buying something and realizing you could have had the same thing for a lot less money. The same goes for interest rates. A fraction of a percent of an interest rate can equal thousands of dollars over the life of the loan. Make sure you know who's offering the best deals. In addition to interest rates, you'll also want to compare processing fees, origination fees, and other associated costs. Some companies offer incentives that can save you thousands, so make sure you know what's currently available before you apply for your home refinancing loan, rather than finding out about great deals after it's too late.

Tip Number 3 - Get Your Credit Cleaned Up Before Applying
Nothing can throw a wrench in the works of a smooth and easy home refinancing more than a nasty credit report. You'll want to contact the three credit reporting agencies to get copies of your credit report. This way you'll see if there is any inaccurate information contained in the report that would cause a lender to delay your hone refinancing process.

Tip Number 4 - Get Your Ducks in a Row
You're going to need a lot of paperwork to process your home refinancing loan. Make sure that you have this paperwork readily available before you apply. This will allow your lender to process your loan application in a timely and efficient manner. You'll most likely need to have 2 years of W-2s, proof of employment, utility bills, bank statements, and other credit references.

Tip Number 5 - Avoid Frustrating Surprises
The last thing you want to do is show up at the closing table to find out that your home refinancing loan is going to cost you thousands more over the life of the loan than you anticipated. This is exactly what could happen if you lock in your loan, rates go up, and you don't close in time to meet the lock requirements. To avoid this, you're going to want to get the longest lock possible to avoid paying a higher interest rate should something delay the closing of your loan.

By following these tips and guidelines, you're sure to avoid a number of headaches that some of the more unfortunate homeowners have experienced when refinancing their mortgage. While these tips can't guarantee that your home refinancing process will go without a hitch, you can be pretty certain that you'll be better prepared for anything that could possibly come up.

Next Step:
Avg. National Rates
30 Yr Fixed
15 Yr Fixed
1 Yr ARM
WSJ Prime
Fed Funds


Home Loans & Car Loans Search

Home Refinancing | Home Mortgages | Home Equity Loans & Line of Credit | Auto & Motorcycle Loans | Auto Refinance Loans
Home - Loans | About EchoBay Loans | Loan Advice | SitemapCredit Report Help CenterDefinition Dictionary

Copyright© 2008, EchoBay Loans Company
Mortgage Refinancing Home Loans Home Equity Loans Auto & Motorcycle Loans Auto Refinancing Credit Reports