Home Refinance

A home refinance is the process of obtaining a new mortgage on a property that replaces the original mortgage, usually to take advantage of lower interest rates, obtain better loan terms, or access the equity in the property.

Here are four common qualifications required to refinance a home:

Sufficient equity: You must have enough equity in the home, usually at least 20%, to qualify for a refinance.

Good credit: Lenders typically require a credit score of 620 or higher, although some may accept lower scores.

Stable income: You must be able to demonstrate that you have a stable source of income to qualify for a refinance.

Debt-to-income ratio: Lenders also look at your debt-to-income ratio, which compares your monthly debt payments to your income, to determine if you qualify for a refinance. Typically, the ratio should be no more than 43%.

Generally, the refinancing process takes between 30 to 45 days, although it can take longer in some cases. The initial step in the refinancing process is to submit a loan application and provide the required documentation, such as income verification, bank statements, and tax returns. The lender will then conduct an appraisal of the property to determine its current value. Once the lender has reviewed the application and supporting documents, they will issue a loan estimate that outlines the terms and costs of the refinance.