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The mortgage crunch has adversely affected your ability to refinance. Yes, people are still refinancing. However, be prepared for change. Credit scores need to be higher, homes need more equity, and you need to show income to qualify for a loan today. There are few exceptions but this is the trend to qualify for a refinance on your home. I have a client who closed on a purchase 6 months ago. He gutted the house and put everything new, from the kitchen and baths to the plumbing and electrical. He fully expected to be able to refinance but was caught by the surprse of change. The loan he qualified for no longer exists. Add to that fact his credit score dropped because he used credit cards to pay for the renovations – which lowered his score from 700 to 630. The moral of the story: consult with your mortgage professional before you plan to refinance, before you renovate. In today’s market more than ever a mortgage professional can advise you of what you need to do to plan your next refinance. You will save money and stay out of trouble.

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