Getting Approved for Mortgage Refinancing: Increase Your Odds of Approval
It’s no fun cleaning the gutters but it’s even worse getting declined by the bank. Here are some pointers that might help improve your chances of getting approved for you mortgage refinance.
Clean up your Credit Report
Negative entries on your credit report can adversely affect your chances of getting approved for refinancing. Make an effort to thoroughly clean up your report card, by first finding out what your credit score is. Keep in mind that it’s not uncommon for mistakes to hit your credit score that could haunt you for years. If you notice something that’s incorrect call the financial institution to get it sorted out. Negative entries could result in a low credit score, preventing you from getting the right type of loan you desire.
Keep Outstanding Debt Low
It’s also a good idea to keep your outstanding debt low. (I know – A lot easier said than done at times). Your application for loan refinancing will have a much greater chance of getting approved if you have a low ratio of debt to income. So start paying off that credit card bill particularly if it’s reached more than three-quarters of its credit limit.
Be Transparent
Provide all the relevant information to your mortgage broker so he/she can help you find the best refinancing solution for you. While you might expect your broker to give you the best advice and offer you a product with ideal terms and conditions, don’t expect this to happen unless you are honest when it comes to your credit history, debts and income.
Compare Mortgage Rates and Mortgage Lenders
Don’t play favourites. If you have your eye on one lender then make sure they are the best fit for you. Different lenders specialize in different products and customer profiles. If you’re self-employed or if you have poor credit you, chances are there’s a specialty lender out there for you.
