Before you meet with lenders to refinance your home, there’s certain steps that you should take to make sure that you are ready to refinance and that the entire process will go smoothly. Whether you want to do a renovation or just get a lower interest rate, refinancing can be useful. These tips will be very helpful to you in making an informed decision.
Just like when you first purchase a home, you’ll need to take a look at your own financial situation to see if refinancing actually makes sense for you. If you’re less than 30 years from retirement, you may want to rethink getting another mortgage that starts from scratch. You can always consider a 15-year mortgage, knowing that your monthly payments will be higher, giving you some breathing room from another 30 years of mortgage payments.
You should be checking in on your credit report periodically in order to catch any red flags early. You’ll also know and understand any weak spots in your credit. You’ll have time to eliminate any errors and give your score time to readjust.
You should also get an idea of where you stand with your credit score. Credit card companies often provide this. There’s also a few free services that exist to help you obtain your credit score. Knowing this information can be very helpful when you’re looking to refinance a home.
Lenders want to know that you don’t owe more than 80% of what your home is worth. An appraisal will be a part of the refinance process, but before you even start, it will be helpful to know how much you owe versus how much your home is worth. If you owe more than your home is worth, you may want to reconsider doing the kitchen over or going for that lower interest rate. Moving might be a better option financially.
A lender likes to know that you’re in good financial standing before they grant you a loan. Work on paying down your credit card balances and don’t max out any cards that you do have. All this can hurt your credit and your chances of obtaining a loan. You can even talk to some lenders beforehand in order to see if refinancing is a good idea.
All lenders are not created equal. You can start with your current lender when it comes to refinancing. Since they want to keep your business, your lender will hopefully have some good deals for you. You’ll need to take some time to compare rates from different companies and find the lowest rates available. If you do your homework, you’ll be able to get the best deals and not regret your refinancing decision.
Have you ever visited someone's home and thought to yourself, "Their living room seems really cluttered" or "Those counter tops look like they haven't been updated since the 1960s!"
Many people quickly notice decorating flaws or home maintenance issues in other people's houses, but when it comes to their own homes -- well, that's another story!
Why is that the case? Two reasons: You're emotionally attached to your own home environment and you're also "too close to the trees to see the forest." It's hard to step back and see your home through a fresh set of eyes -- which is exactly the way prospective buyers are going to look it.
Curb appeal -- or a lack, thereof-- will be the first thing they notice, followed by positive or negative first impressions of your home's interior -- if they get that far! So if you're preparing to put your home on the market, you don't want to be like the person who tries to represent themselves in court. As Abraham Lincoln once said, they have "a fool for a client!"
Since first impressions are so vital when selling your house, it makes sense to confer with someone who really knows the ropes when it comes to home staging. Typically, that would be one of the following professionals:
According to the National Association of Realtors, the median amount of money spent on staging a home is $675, so it doesn't necessarily have to be ultra-expensive. In a survey of its membership, Realtors ranked living rooms and kitchens as the most important rooms to stage. Also considered important are the master bedroom, dining room, and bathrooms.
Thirty seven percent of Realtors® representing sellers believe that buyers most often offer a 1 to 5 percent increase on the value of a staged home. A smaller percentage say the potential increase is in the neighborhood of 6% to 10%. However you look at it, you're tipping the scales in your direction when you make your home look its best prior to putting it up for sale.