Do I Qualify for Refinancing?

What You Should Know Before You Refinance

Refinancing your mortgage could save you a lot of money, but it is not for everybody. Here is what you should know before you refinance and whether or not you qualify for a straight refinance.

Good Credit

Good credit is generally considered somewhere around a score of 700 or above. Your credit score is important because lenders use it as a risk factor to determine your new interest rate. The higher your credit score, the better your chance are of getting a lower interest rate. We offer loans with a credit score down to 620.

Documentation of Income and Debt

Even if you don’t have a high credit score, you could still be eligible to refinance at a lower rate if your debt-to-income ratio is lower than 42%. Your debt-to-income ratio looks at your housing payment and other monthly debts and compares it to your gross monthly income.

This number, along with the associated debt payment documentation and proof of a steady salary will determine your eligibility to refinance.

For a full list of documents, needed for mortgage application, visit our Refinance Application Checklist.

Ability to pay Refinancing Fees

Even after you qualify for refinancing, you should know and consider all costs before deciding to move forward. There are many costs involved that could include: appraisal fees, loan origination fees, application fees and inspection fees.

If you have more questions, contact us or get started today.