Just like in any other deals, there is no one-size-fits-all formula when it comes to mortgage refinance, San Diego. People are different and so are their needs. A particular deal might be favorable for one but not for the other. That is why, if you are planning to apply for refinancing, it is a great help if you consult a professional who can make an assessment of your unique case and can effectively walk you through the process of mortgage application.

Before you sit down with your mortgage broker or advisor, it makes sense that you have some idea about what you are getting in. After all, getting a mortgage is one of the most important financial decisions you will make in life. It is important to get it right.

So, let’s go back to the question at hand: Should you go for a mortgage refinance, San Diego? Below are some factors that may increase your chances of getting approved (and getting a good deal) in your mortgage refinance application.

• You are a 20 percent stakeholder. The truth is, lenders generally favor those buyers who have at least 20 percent of the equity in the house. This is determined by dividing the principal amount that you are trying to borrow by the value of your house. When your LTV (loan-to-value) is at 80 percent, you have 20 percent equity position.
• The debt you carry. This is another factor that lenders consider to assess your qualification. This is determined by getting your debt-to-income ratio, which is done by dividing the amount you pay for all of your debts in a month by your income. Ideally, lenders want that ratio to be no more than 38%.
• How healthy is your credit score. Most lenders consider a credit score of 600 as their baseline for refinancing approval. Other lenders (e.g. a select credit union, local banks) have put the minimum credit score requirements at 720 or above. How is your credit score computed? It is based on these factors: payment history, utilization ratio, the length of credit history, new credit, as well as the types of credit in use.

If you have more questions regarding the three items above, note it down and ask clarificatory questions when you finally sit down with your broker.

For professional help on mortgage refinance, San Diego, contact us at 800-958-7587 (PLUS).