3 Top Refinance Tips
FOR A ROCKIN’ RATE
1. Improve your Credit Score
If you’ve had trouble paying on time, missed mortgage payments, have a BK or even a foreclosure, don’t fret – banks are still willing to you lend you money!
Pay any credit cards down to 30% of their balance – this can boost your score very quickly (within 30 days)
Get hooked up with a credit repair specialist. They can contact credit reporting agencies and fight in your behalf to get items removed fast.
But you need to start somewhere – and the truth is – time heals all. Now it’s not to say if you’ve have a recent late payment you can’t qualify for a great rate, you just might need to explain what happened.
On the other hand – Having a great credit score gives evidence of hard work, determination and years of paying on time. You should feel proud
of what you’ve accomplished and know that you will be rewarded
with the absolute best rates a bank can offer.
2. Source your cash
A lot of good people I know also make good money, but if you can’t tell a bank where it came from, you will have a heck of a time trying to use it to qualify. The good news is all is not lost. Most banks require just 2 months worth of seasoned cash (hold the salt please). What this means is, they just need to see it in your bank account for the last couple of months. Just like a good seasoned dish, it sits for a while and has time to marinate. So yes, if you want to use it, let your cash sit for a while – it just makes life so much easier.
3. Call your LOAN OFFICER Before your Tax Guy
What??? Haven’t heard this one before have you? Let me explain.
If you’re self-employed like me, you know the wicked games we play (song reference) with the IRS. It’s really a love hate relationship. You love to write off everything, but you hate that you can’t qualify for a loaf of bread let alone a loan on your home.
And that’s because banks don’t care how much money you bring in, all they care about is the bottom line number – Our good friend…. THE ADJUSTED GROSS INCOME.
So whats the solution? Well you have to come to grips with the fierce reality, if you don’t show the income, you can’t qualify for a mortgage.
So BEFORE you get your taxes done, call your Loan officer, Dan Felico. In most cases I can tell you what the minimum amount of money you need to show to qualify for your mortgage. Yes, this may mean thousands more to the IRS – but consider this part of your business, and the cost of doing business.
No I’m not licensed to give tax advice, but I am licensed to tell you how much you can afford on a mortgage. So Let’s talk! 661-803-9046