Requirements For A Mortgage Refinance
When interest rates drop lower than your mortgages current rate, you may consider applying for a refinance. If you want to refinance your mortgage, you will have to meet many of the same qualifications that you had to meet when you applied for the initial loan.
The exact requirements vary from one lender to another, but most lenders will consider the same items when determining whether or not to approve your application. In some cases, a lender may be willing to amend a qualification requirement in certain circumstances.
Before approving your application for a mortgage refinance loan, most lenders will consider your income. You must have a reliable source of income, and the amount of income you receive each month must be sufficient to easily cover your loan payment and other financial obligations. Most lenders require your total monthly obligations to be no more than 40 percent of your monthly gross income.
Most lenders will also look at the appraised value of your home. Lenders are not typically willing to approve a refinance loan for an amount greater than the homes value, and many lenders require you to maintain an equity level of at least 5 percent. If your homes value has fallen dramatically since you purchased it, you may have trouble obtaining a refinance loan.
Finally, most lenders will consider your credit score when determining your eligibility for a refinance loan. If your credit score does not exceed a set minimum, you may not qualify for the loan at all. If your credit score exceeds the lenders minimum but is still considered poor, you may have to agree to a smaller loan amount or a higher interest rate. For example, lenders that usually agree to finance up to 95 percent of your homes value may only offer to finance 80 percent if your credit score is less than ideal.
If you would like to learn more about the requirements for obtaining a refinance loan, visit www.CreditNowUSA.com to read more about the subject. You can also use CreditNowUSAs convenient online application to apply for a refinance loan today.
For more information, go to Mortgage Refinance at http://www.creditnowusa.com/Mortgage-Refinance
by: Money Lender