10 Mistakes to be Avoided while Refinancing Your Home - Part2
Continuation from the previous post 10 Mistakes to be Avoided...Part 1
4. Having a verbal (not in written form) Rate Lock :-
Don’t go by the words. Have a written document about interest rate, closing cost, APR and all the fees related to the refinance. The loan officer can offer you a lower rate but this can change anytime, so better to have a written statement about the related costs for you home refinance. This is easily available as Rate Lock Commitment. Always ask for your copy and keep it as record.
5. Not having a Good Faith Estimate (GFE)
Within 3 business days of receiving your loan application, your lender must provide a GFE or Good Faith Estimate about the closing cost. This can trace you whether any hidden cost is being levied from you or not. This can save your lots of money and also keep you away from the problems. If you haven’t received the GFE, then rush to the lender to get it.
6. Paying for an appraisal despite the lower home value:
If you know that your appraised home value is low, then don’t agree to pay for appraisal. If you like you can request for a home valuation using the automated valuation model (AVM). In this model the lender and realtor carries a market analysis based on the price of the other houses in your locality. These comparisons can help to save a lot of your money when the realty prices are going down day by day.
Checkout for the rest 4 mistakes in the next post - 10 Mistakes...- Part 3
4. Having a verbal (not in written form) Rate Lock :-
Don’t go by the words. Have a written document about interest rate, closing cost, APR and all the fees related to the refinance. The loan officer can offer you a lower rate but this can change anytime, so better to have a written statement about the related costs for you home refinance. This is easily available as Rate Lock Commitment. Always ask for your copy and keep it as record.
5. Not having a Good Faith Estimate (GFE)
Within 3 business days of receiving your loan application, your lender must provide a GFE or Good Faith Estimate about the closing cost. This can trace you whether any hidden cost is being levied from you or not. This can save your lots of money and also keep you away from the problems. If you haven’t received the GFE, then rush to the lender to get it.
6. Paying for an appraisal despite the lower home value:
If you know that your appraised home value is low, then don’t agree to pay for appraisal. If you like you can request for a home valuation using the automated valuation model (AVM). In this model the lender and realtor carries a market analysis based on the price of the other houses in your locality. These comparisons can help to save a lot of your money when the realty prices are going down day by day.
Checkout for the rest 4 mistakes in the next post - 10 Mistakes...- Part 3
Categories:
Refinance
nice post, nice photo
ReplyDelete:)
Brief but very helpful information you have provided. Useful for many. Keep it up.
ReplyDeleteSherin
I liked both part 1 and part 2 of refinancing tips. Finances are my weak point, I never can manage it. So I think these tips will be very helpful for me. Thanks for posting.
ReplyDeleteNIce points and helpful tips.
ReplyDeleteDo you have any links to any of those automated appraisal services?
That sounds like a great ressource.
Useful tips.
ReplyDeleteAt present situation, everyone needs these tips.
Cool and Keep it up.
:-)
Insurance Agent
it's a helpful information,,nice post.....
ReplyDeletearticle on 10 mistakes is excelent.
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http://businessvartha.blogspot.com
Excelent, very helpful, especially this difficult days.
ReplyDeleteVery useful tips. I specially agree with " Having a verbal (not in written form) Rate Lock". And a very nice photo too. Keep going.
ReplyDelete