3 Things to

Prepare for a

Successful

Refinancing

City Creek Mortgage

11910 S. State Street, Suite 100

Draper, UT 84020

801-501-7950

Refinancing means getting a new loan at a lower rate of interest. It is paying off the

existing debt with the new loan proceeds for the same property. It is a great way of

paying off the mortgage loan.

The challenge is to get the application approved. The big three requirements to focus on

are the following: credit score, income, and home appraisal.

Credit Score

The credit score is used to

determine the financial reliability of a

borrower. Lenders and banks require

the credit history and profile of the

borrower from credit reporting agencies.

These records contain credit history,

payment history, types of debt incurred,

new debts and public record information

like foreclosures and bankruptcies.

The credit scoring is between 380

and 850. A score of 700 is a sign for

healthy financial status. A score of 600

and lower already poses high risk for

the lenders. For most lenders, a core of

620 is necessary for application.

The credit score also determines

how high the interest rate will be. The

credit score is inversely proportional

with the interest rate. Lower rates are

given to those with higher credit score

because it is a sign that the borrower is

dependable.

Income

If the borrower has a high-paying

job and stable stream of monthly

income, then this requirement is

covered. A substantial and stable

income. Most self-employed and retirees

find it hard to qualify for a refinance.

Having shares in stocks does not

guarantee the approval. It does,

however, make the portfolio more good

looking. The key idea here is to assure

the lender that the mortgage loan gets

paid on time.

Home Appraisal

Achieving a high appraisal does not have to be rigid. Appraisers usually focus on

the exterior and interior conditions of the home, the number and functionality of rooms,

the age of the home, location and overall amenities of the property. High appraisal will

merit good standing when it comes to refinancing approval.

To qualify for a refinancing, the borrower must have a high credit score, steady

and high monthly income, and high appraisal. Securing these areas before the actual

application will save waiting time and gets the deal as good as done. .

RESOURCES:

http://www.investopedia.com/articles/personal-finance/042514/home-appraisal-your-

key-successful-refinance.asp

http://homeguides.sfgate.com/credit-score-needed-refinancing-2343.html

http://www.citycreekmortgage.com/loan-process.html