Saving Money By Refinancing A Loan

When you refinance a loan, it is imperative to research all your options. Refinance home loan programs are available across the U.S. to help borrowers receive all the benefits a loan refinance provides. Both personal and home mortgage loans can benefit from loan refinance programs, and it is important to know what steps to take for each.

The best mortgage refinance companies provide excellent customer service, low APRs and friendly loan terms. PNC refinance rates are some of the best available, but other lending companies also offer great programs. Read ahead for valuable information about loan refinance programs available for your needs today.

Loan Refinance: What Are the Steps to Take as a Borrower?
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The process of a loan refinance involves multiple important steps from the borrower, and believe it or not, also the lender. Your first step as the borrower is to research and assess your chances of approval. Two primary factors influencing your approval status include your overall credit history and current FICO score. 

Your FICO score is a three-digit number, which essentially tells potential lenders and other creditors how much of risk it is to loan you money. Your FICO score is therefore a representation of your creditworthiness based on several factors as analyzed and determined by the major credit bureaus. 

The website allows you to check your FICO score and credit reports from all three major bureaus for free once each year. Equifax, Experian and TransUnion each takes your credit history into account in a different way. Many lenders pull reports from all three bureaus before loaning you money. This helps the lender obtain the best possible picture of your creditworthiness and finances.

While comparison-shopping refinance lenders and interest rates it is advisable to also collect required information and documents for your loan application. You will be required to prove your name, age, birthdate, address and citizenship status.

You will also be required to provide proof of employment, income and credit history. This includes supplying two years of tax returns along with relevant bank statements.

For mortgage refinances you also need to show proof of homeowners insurance, relevant mortgage statements and anything else the lender requests (including a possible home appraisal).

You are responsible for assessing your budget. Knowing your FICO score also helps you understand the total loan amount and annual percentage rate (APR) you qualify for. The lender will make these assessments as well, but obtaining the information in advance potentially helps you negotiate better APRs (and definitely helps you get prepared).

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By Admin