Author: Julian Lim
There are many different determining factors that the lenders use to decide if they will approve your home refinancing application or deny it. Some of these include your current employment situation and total household income, your outstanding debts, your current credit score and credit report and the amount that you wish to refinance. Another determining factor is the current interest rate as compared to the original rate. Just because the current interest rate is lower that, what you are paying does not guarantee that you will get that lower rate.refinancing mortgage
Knowing Your Financial Standing
Any time you apply for any type of loan, your financial status will always be part of the determining factors. Applying for home refinancing is no different. As long as you are expected to repay any type of loan to a financial institution, your employment situation and financial status will be taken into account. The lenders need to know that you are earning enough or more than enough money to afford to repay the money you are borrowing from them. If they see that you are not making any more than what you would be paying per month as your payment, they may turn you down. refinancing mortgage
Keep Your Debts Down
Keeping your outstanding debts to a minimum is another good way to be sure that you will be approved when applying for home refinancing. The more debt that you have outstanding… such as open charge accounts or more than 10 remaining car loan payments… the greater the chances are that you will either be turned down or be given a very high interest rate. This is simply because the lenders know that you must also figure these debts into your personal budget. If there are too many currently, you might not be able to keep your mortgage payments current. refinancing mortgage
Know Your Own Credit History
Your current Credit Report and Credit score will also have a huge impact on any home refinancing that you are applying for. If there are more than a few late payments (30 to 90 days or more) this will not be looked at favorably by the lenders, as it says that you are have trouble keeping your current obligations met and might also have trouble repaying the mortgage loan if they approve it. Too many open lines of credit (credit cards and store charge accounts) are also causes for being denied a loan. refinancing mortgage
Other Thoughts in This Matter
Remember that you may be turned down for many reasons when applying for home refinancing. If you are denied financing by the lender(s) you need to ask them to tell you specifically what the reasons for rejection were. Most of the time they will do this anyway, but at times you will need to ask for specifics. If you are able to keep everything in order, it will not be that difficult to be approved for refinancing when the time comes that you need it. Being cautious and always watchful and honest works well. refinancing mortgage
About the Author:Do you need more information about Home Refinancing or have other questions? http://www.homemortgageloan-refinance.com/Bad-Credit-Home-Loan-Refinance.php is a great place for reference material about this interesting topic. refinancing mortgage
Article Source: http://www.articlesbase.com/mortgage-articles/home-refinancing-3-ways-to-know-what-you-really-can-do-681035.html
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