Mortgage Refinancing - 3 Costly Mortgage Mistakes You Need to Avoid

Mortgage Refinancing can save you a lot of money if you go about it correctly. Overpaying when mortgage refinancing is a common homeowner mistake that will cost you thousands of dollars in unnecessary lender fees and mortgage interest. Here are 3 tips to help you avoid expensive homeowner mistakes when mortgage refinancing.

Mortgage Refinancing Mistake #1: Not Checking Your Credit Reports

The mortgage rate you qualify is based on your credit score. Your credit score is based on the contents of your credit reports. You actually have three credit reports maintained by three separate credit reporting agencies. These credit reports are frequently prone to mistakes as you have dozens of hands in your records throughout the year. Request copies of your credit reports from each of the credit reporting agencies and carefully review these records for any mistakes.

Mortgage Refinancing Mistake #2: Choosing a Bad Lender

If a mortgage lender asks you to sign blank or incomplete documents when mortgage refinancing, consider this a bad sign of things to come. If you sign blank or incomplete loan documents the mortgage company could fill in whatever they like and you've already agreed to their terms. Also, if the mortgage company asks you to exaggerate your income you're asking for trouble. Avoid any mortgage company that asks you to falsify information or sign blank documents.

Mortgage Refinancing Mistake #3: Not Negotiating for Fees and Rates

Closing costs and lender fees vary widely from one mortgage lender to the next. Carefully compare costs and fees using the Good Faith Statement and question any fees that seem unreasonably high. Ask your mortgage company or broker to see the original interest rate guarantee from the wholesale lender and compare it to the written guarantee you received. Comparing these guarantees will help you avoid any retail markup or Yield Spread Premium of your mortgage interest rate.

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Posted in: Avoid,Costly,Mistakes,Mortgage,Refinancing