With mortgage rates in Missouri at record lows, many borrowers are looking to save money and pay off their loan faster. Homeowners have raised some common questions before they chose to refinance. Does my credit score need to be perfect? What does it take to qualify? What are my options?
The current climate is offering refinancing opportunities to homeowners who have a combination of good credit, stable income, and home equity. Mortgage rates in Missouri have dropped dramatically over the past year, which has given qualified homeowners an opportunity to pay off their mortgage. They then have a chance to start saving money for other important investments such as a college fund, family vacation, or a brand new car.
In today’s real world, there is usually a flip side to any positive news. Even though there are low mortgage rates in Missouri, this does not mean every person who is interested in refinancing will get approved. Depending on the lender you choose, some companies may have higher levels of restrictions and qualifications than others, based on various factors which may include credit score, income documentation, and debt-to-income and loan-to-value ratios.
As a homeowner, it is important to research the requirements to get approved for a refinance mortgage. Don’t feel overwhelmed or stressed. There are many mortgage specialists that will give you a free consultation to help you get your finances on track and improve your credit score.
Compared to previous years it has been more difficult to qualify for a refinance since Fannie Mae and Freddie Mac (government sponsored enterprises that provide financial backing in the U.S mortgage market) have increased their guidelines and restrictions. On the bright side, there are still numerous consumers who qualify for a home loan. If your credit, income, or any other requirements meet their standards, you have the opportunity to take advantage of the low mortgage rates in Missouri, which can benefit your financial future.
Unfortunately, we can’t dismiss the fact that the guidelines are strict. This does not mean banks aren’t lending and there is no money out there. As you may have heard before, there is always light at the end of the tunnel, and there are still many opportunities for homeowners. The best advice is to do your homework, research online, and find a lender that is able to help you in your specific financial situation.
You can start your research process by contacting a Cornerstone Mortgage professional. We will have a specialist contact you in less than 24 hours. You can simply fill out a contact form or give us a call at our Toll Free Number: 800-965-9910.