Whether your goal is to pay off some debt or to add an addition to the back of your home, if you are interested in refinancing your mortgage and want a better interest rate on the new loan, you will want to take some proactive measures. Some of the things you will want to try include:
Keep Up With Your Payments
Even if your current interest rate is causing your minimum loan payments to be extra hard on your budget, you will need to make it a point to place this debt as a top priority over any other type of debt. If you are not able to keep up with your mortgage payments, it is going to drastically impact your credit score in a major way. Also, the new lender might suspect that your mortgage debt is not all that important to you and will, therefore, want to avoid refinancing the loan for you.
Pay Off Your Smaller Debts
You want to spruce up your credit report as much as possible. One way to do that is to make sure that you are paying off any small debts that are lingering around. Even if they have already been charged off due to a long time of non-payment, you will still want to pay off the debt. This will show that you are taking responsibility for your debts and this will help improve your credit rating. You will no longer be considered as much of a risk to lenders.
Try To Save Up A Down Payment
While you do not always need to have a down payment for the new mortgage loan, it is something that can help your chances of being approved for it. This is because it lessens the total amount that the new lender will have to finance for you. It also shows good faith on your part, and since many lenders feel that they will not have to risk as much when you are invested in the loan, they might be more willing to work with you on getting the loan set up.
By simply making use of the previously mentioned tips, you should find that you will have a much better shot at getting the refinanced mortgage that you have wanted for a long time now. The more proactive you are with this, the sooner you will finally have the refinanced mortgage that can save you a lot of money over the years.
Contact a company like First Mortgage Company, Inc. for more information and assistance.