Many homeowners can benefit from refinancing a mortgage due to the near record low interest rates that are available right now. However, only 1 in every 3 applications is approved and the others are either returned as incomplete, or denied. Here are some things every homeowner can do ahead of time to ensure they get approved, on the first try, for a mortgage refinance.

Be Prepared
The most common reason a mortgage refinance application is returned to a homeowner is due to lack of financial information and documents. To avoid problems, and show the lender or bank you are serious, easy to deal with, and prepared, have all of your financial information ahead of time. Make sure to get copies of any documents that are required, double check them for accuracy, and get them sorted. This will make it easier for both you, and the lender or bank, when refinancing a mortgage and will ensure that no information is missing or delayed when processing your application.

Review Your Credit
Many homeowners find out too late that there are errors or inaccuracies in their credit report. Instead of being surprised with a returned or denied application, take some time to review your credit. Request a free copy of your rating and double check it for accuracy. Many times, homeowners are denied due to small, but significant, reporting errors. Take a little time to review your credit and make sure everything is in order before approaching a lender or bank about refinancing a mortgage to avoid any surprises.

Shop Around
Always compare different mortgage lenders and banks refinancing options against each other when refinancing a home mortgage. Sometimes, getting an approval is easier with one lender, but a little more costly. Other times getting approved is not so easy, but the terms and interest rates may be worth the attempt. The only way to know what is the best option for your situation is to compare different lenders and banks against each other. Make contact with several lenders and banks before committing to one. This will give you a chance to ensure that you will qualify, what is needed, and what your terms will be.

Many homeowners apply, but a lot of them do not take a little time to ensure that they will get approved, and get the best deal possible. Any homeowner can do these things to help ensure they get approved for a mortgage refinancing.

-M Petrone

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