Refinancing Traps

shutterstock_112335221Refinancing Traps

Refinancing can be tricky, but a little preparation before starting the process goes a long way in avoiding mishaps along the way. Here are some common traps that many run into while refinancing their homes and ways you can avoid falling into the same traps.

 

The automatic payment trap

Did you know it can take up to two weeks to have automatic payments canceled? If your payments are made this way, be sure to turn it off before closing. You don’t want to pay for the same month twice!

The missed or late payment trap

Believe it or not, lots of people think they don’t have to keep making payments once they apply to refinance. Missing a payment could damage your credit and even preclude closing. Just be careful regarding your very last payment, as it should be made in time to assure it’s credited toward your payoff balance.

The tax escrow trap

The funds in any existing escrow account will typically be held until after the current loan is paid off. Since this money will not be available at closing, you need to be able to establish a new escrow account and/or pay any upcoming taxes from savings or the new loan proceeds.

The insufficient funds trap

The tax escrow trap can contribute to this, and so, too, can many other factors. For example, a low appraised value could limit your loan amount. As many loans are set up to cover all closing and escrow funds, it’s important to know that any necessary or unexpected adjustment could change the cash to close requirements accordingly.

 

We want you to be aware of these potential pitfalls before they have a chance to occur. Of course, we will work with you and on your behalf to prevent and avoid them.

 

Looking to start the refinance process? Find your local Inlanta loan officer here. Already going through the refinancing process? Reach out to your Inlanta representative whenever you have questions, and we’ll be happy to help.

 

Inlanta Mortgage, Inc. NMLS #1016.

 

FHA Refinance Loans Available to More Borrowers!

Lower FICO Score Requirement for FHA Refinance

Borrowers with credit scores 620 and above may now be eligible to refinance their homes using an FHA loan.

Do you want to refinance your home using a FHA loan program? Due to new lower credit score requirements, you may now have the opportunity to qualify for an FHA refinance loan despite a few black marks on your credit report.

Lower FICO Score

Borrowers with FICO scores 620 and above may now be able to qualify for an FHA regular or streamline refinance loan. This reduced FICO score may help borrowers who pay their bills on time take advantage of near record low mortgage rates.

Contact a licensed Inlanta Mortgage loan professional for more details regarding FHA refinancing.

In case you missed it, you may be interested in knowing there are important deadlines for FHA borrowers. Check out our recent blog post FHA Borrowers Face Deadline to see why applying for an FHA loan before March 28th is so important.

Why Refi?

The number one reason to refinance is to get a lower mortgage rate. Use our calculator to input a lower interest rate and to estimate how a reduced mortgage rate could lower your monthly payment. Contact a licensed mortgage loan officer near you to discuss your refinancing options.

Inlanta Mortgage is proudly celebrating twenty years in business. Learn more about Inlanta’s twenty year history here.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.