WHAT LENDERS LOOK FOR TO REFINANCE YOUR LOAN April 29, 2009

I often hear from clients “I pay my mortgage on time, my credit is good, I’m not borrowing any extra money, so all I want is to get a lower rate, why do I have to go through a whole process?” 

Unfortunately, even if you are just looking to lower your interest rate and loan payment your loan request must go through the whole underwriting process.  Therefore most lenders refinance applications are the same forms as a purchase money mortgage application.  A borrower must show (and the lender must verify)

1)  Credit Report -that the borrower has good credit,
2)  Income – that borrower makes enough money to support the loan,
3)  Reserves – some available liquid assets (bank or brokerage accounts) and
4)  Collateral- an appraisal is done to document the home’s value to determine loan how much of a loan the lender is willing to make. 

Steven Decker is a New York Personal Injury attorney specializing in New York real estate law , New York business law, and New York franchise law. You can visit his Law Firm Decker, Decker, Dito and Internicola website by clicking here, download his FREE New York Car Insurance book, or call him at 718-979-4300 or 1-800-310-5520 for a free case analysis.

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