6 MUST HAVES Before Refinancing

Six MUST HAVES Before Refinancing
Your quest for refinancing your California mortgage has led you to this site.  Having gotten my start in real estate lending in 2004, I have helped well over 1,300 homeowners obtain financing and I know what’s important to homeowners & consumers because I am both.  Customer Satisfaction is one of the most important things to me and my clients learn that I will go to great distances to provide this. If you’re looking to refinance your mortgage, you’ve come to the right place.   
There are SIX main things you need to look for in a lender before you commit to doing a California Refinance.  These will help you get the best deal. 
  1. Most homeowners know to ask about interest rate & loans costs.  This is where having a company who is a direct lender and does a lot of volume is beneficial to you.  Non-direct lenders and brokers sell their loans to other lenders, who then sell their loans to Fannie Mae and Freddie Mac.  They are really just a “middle man”, and this system may result you getting a higher rate and / or fees.  Prior to refinancing, make sure your lender is a direct lender.  Also, just because you bank with a particular lender does not mean they can get you the best deal.   It helps to ask the right questions.
  1. Make sure you interview the Loan Officer you speak to.  There are significant differences between Loan Originators (LO), and having the right LO for the job can be the foundation for successful transaction.  Naturally, you want someone who is very experienced, has your best interest in mind, who can be reached 7 days a week, who works very hard and will go above & beyond for you.  The loan process is full of challenges, and someone who can navigate through them is a must. 
  1. Finding a lender who services many of their loans can help you because they can oftentimes make certain exceptions that other lenders typically cannot make.  This could be the difference between getting approved and being declined.  I’ve lost count of the number homeowners I have been able to help after being declined by a previous lender because of an “overlay”, a restrictive guideline, or because the Loan Originator (or appraiser) overlooked something important.  They’re human and it happens all the time.
  1. Prior to refinancing your home, it’s important that you understand the lender’s appraisal process.  You have probably heard the term “LTV” before, which stands for loan-to-value.  It’s a ratio that measures the equity in your home and typically affects your interest rate.  Therefore the value of your home, and the role of the appraiser, plays a vital role in the outcome.  Appraisers who are overly conservative or miss something can impact (or even kill) your loan.  To that extent, two different appraisers can appraise the same home and come up with two different values.  How? Appraisers will acknowledge that appraising homes is somewhat subjective and by definition is “an opinion of value.  We recently had an appraisal come in at $252K, but there were comps the appraiser missed that supported a higher value. We submitted a “Value Reconsideration Report” identifying 4 nearby & recent comps and the appraiser revised to $325K.  The loan closed successfully.  Many lenders can’t do this.  Find out if your lender has a value reconsideration process in the event the appraiser misses comps or overlook things.  They’re human too.
  1. Find out when your lender will lock your interest rate.  A quoted rate is no good unless your lender can and will lock it right away as opposed to waiting until your loan is approved as many do. If the lender won't lock until the loan is approved, and rates change, odds are you’ve already spent $400+ on an appraisal that can only be used by THAT lender, and you’re either stuck with the new rate they offer, or you’re out $400+.  If you happen to already have an appraisal, check to see if the (new) lender can use that appraisal.  Many can NOT, but some can.  Find a lender that can lock the rate on your refinance when YOU want them to lock. Also, work with a lender who can drop your rate AFTER they locked it if the market improved.
  1. We’ve all heard the term “time is money”, which is why it’s important to find a lender that can close quickly.  There are a few reasons for this. (1) When refinancing, the faster you can reduce your rate & payment, the sooner you’re saving money.  Every additional day results in additional interest that you’re paying on your old loan.  (2) Each day that passes is another chance for something to go wrong, the rate lock could expire, or a guideline could change. Don’t get caught in this.  (3) If the lender has to extend your rate lock, there is a cost and most times the homeowner pays it.  With many lenders taking 90+ days to close a loan, you want to find a lender who can close within 30 days.       
It may be true that you have many options when it comes to refinancing.  But I strongly believe there are a few GREAT options when looking to refinance your mortgage.  One thing is certain.  We all want the best deal.  But at the top of the pyramid, there is room for only a few.  If you’re interested in getting a FREE QUOTE, just click this link: Free Refinance Quote   If you have any questions send me an email.  I’m happy to be a source of information for you. 
Justin Lees
NMLS 110154
Branch Manager
Supreme Lending


The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Supreme Lending, and do not necessarily represent the views and opinions of Supreme Lending. In no way do I commit Supreme Lending to any position on any matter or issue without the express prior written consent of Supreme Lending’s Human Resources Department.

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