Budgeting Cash Out Refinance Mortgages

The Refinancing Process

So, you are thinking about refinancing your home. That can be a smart decision for many families. After all, it can save you each month on your mortgage payment or give you money you need to accomplish your goals. However, the process of refinancing can be a bit daunting—if you do not know what to expect. We have broken the process down into seven steps (although your exact situation may vary slightly). Reading this will help you know what to expect and help you decide if you should get started.

  • Get Credit in Order – Check your credit score, gather your reports and make sure there are no errors. Checking out this info can help you get the best rate possible.
  • Know the Value of Your Home – If it has been some time, you may want an appraisal. Also, check comparable sale prices in your neighborhood in Louisville, Kentucky
  • Gather Documents – You will need items such as bank statements, tax returns, proof of income and assets. Gather these today, so you don’t struggle later.
  • Contact Mortgage Bankers – If you have a company you can trust, get in touch with them. We’re always here to help residents in Louisville, Kentucky and surrounding areas.
  • Compare Rates – Look at things like interest rate, fees, and points. Compare apples to apples. Realize that “no-cost” refinance deals don’t exist. If you’re not paying anything now, it is being added to your principle.
  • Read All Documents Before Closing – Ask to see closing documents at least 24 hours ahead of time. This gives you time to get errors corrected and ask questions.
  • Closing – The process is usually easier than it was to buy your home in the first place. You’ll have a lot of signing to do, but the task is often fast and painless—since there is not another party involved.

As you can see, refinancing is not that complicated—once you understand what is happening. If you think that refinancing might be a good decision for your family, feel free to reach out to us at Liberty Financial in Louisville, Kentucky. We would love to help you!