Mortgage Refinance Tips

A successful mortgage refinance can have many benefits. Here are some tips for a smooth home loan refinance:


1. Research current mortgage

Research your current mortgage thoroughly (including rates, fees and home loan features) so you know what you are comparing your new home loan to.


2. Research mortgage features

Research mortgage features and make a decision on which features you actually need, to ensure you are not paying a higher interest rate for features you don’t need or wont use.


3. Speak to your mortgage broker

Speak with your mortgage broker/lender about debt consolidation if you have a number of personal loans or credit card debt you would like to eliminate.


4. Work it out

Do your sums first to make sure that there is a saving after all the exit fees of your current home loan and all the start-up fees of your new mortgage.


5. Query your new lender

If switching mortgage lenders, ask your new lender to show you how long it will take for the savings on the new home loan to outweigh the costs of exiting the old home loan.


6. Check the exit fees

Ask you current mortgage lender what are the exit fees, if any, to pay out your mortgage and go elsewhere and what happens if you switch mortgages but still remain with the same lender?


7. Consolidate your options

Don’t send in mortgage applications to multiple lenders in hope that one will say yes. This can cause havoc by reducing your credit worthiness if home loan lenders see how many loans you have applied for in recent history.


8. Ensure your documentation is complete

Take the time to complete your mortgage application in full and supply all requested documentation. If there are sections of the mortgage application that do not apply to you, then cross them out so the lender knows that they are not required to chase up that information. Also feel free to contact your lender/mortgage broker to ask them a question if you don’t know how to complete a section of the mortgage application form. It is better than sending in the form without answering that question and avoids unnecessary delays in processing the home loan application.


9. Keep a copy

Always keep a photocopy of the mortgage application and supporting documentation in case it gets lost in the mail.


10. Assist where you can

During the valuation process, offer as much help to the valuer as possible by providing them with copies of floor plans if you have them and giving them full access to the property (inside and outside). This will avoid delays with the valuation process.
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