How to Mortgage a Loan Transfer
- 1). Assess the state of the housing market and the economy. Rates and fees are loosely based on the health of the wider financial community. For example, one of the best times to refinance is during a period of economic sluggishness--such as following the 2008 credit crisis. Banks are anxious to lend, and therefore, will lower rates to encourage more borrowing.
- 2). Review your credit qualifications. Pull a free copy of your credit report at Annual Credit Report. Pay for your FICO score, too. This three-digit number will tell you how you are performing overall. Scores between 680 and 850 are great. Scores between 350 and 600 are poor.
- 3). Make a list of financial priorities. Wading into the lending market unprepared could be a disaster. There are a huge number of programs and lenders and consumers can get overwhelmed easily. Write down your "must-haves." These could be monthly savings, lower rate, lower term or cash out.
- 4). Find three or four lenders that meet your standards. Make sure your credit score gives you a fighting chance of qualifying with these lenders. For example, if your credit score is 580, you will not get approved at any local bank or credit union.
- 5). Fill out refinance applications with these lenders. Compare all offers against both your existing loan and the other offers. Make sure that the loan transfer you choose meets as many financial priorities (Step 3) as possible.
- 6). Complete the loan process with the lender of choice. Contact all other lenders and request that the other applications be turned down.
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