Now is the time to prepare yourself for a refinance opportunity in the late spring or early summer. By preparing, I’m advising you to take some actions to ensure you get the best possible rate and program when it comes time to underwrite your loan. Banks are exceptionally tough right now and will continue to be a challenge:
> Credit: Make sure your credit rating is solid. A score of 720 is really desired. Improve scores by keeping credit debt under 30% of the available balance of any card. Don’t pile the debt on to one single card, spread it across a few and don’t open any new credit accounts, buy a car or anything that will ping your credit.
> Assets: Lenders like to see several months worth of “reserves”….so try to pad your accounts as best as possible; PERSONAL Checking, PERSONAL Savings, 401k, equity accounts….Liquidity.
> Tidy up: With more storms coming, keep the yard and home looking sharp so that when the appraiser does come, she’ll be able to show your house in GOOD shape and therefore be able to use the highest possible comps. Don’t open up any walls or have any construction going on when we go to appraise.
> Keep documentation: We’ll need copies of bank statements, recent mortgage and insurance statements when applying.
> Pay Attention to the market: " Tune in" to some of the different loan products to find the one that meets your needs. There are fixed rates, Option Arms, Home Ownership Accelerator loans, Hybrids. Notice if you’re cash-flow sensitive, rate driven or fixed rate oriented.
Call or email with any questions. Lots of factors that you can start to control NOW so that you're good to go. Your call. Let me know how I can help. I've got the goods: Pat Townsley, Mortgage Broker. 415-485-1776. http://www.ptre.net/
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