But is it a Lack of Time or Misdirected Priorities?
One day last week I was listening to CNN. I happen to be a CNN junkie. They were interviewing a guy who was so devastated about losing his job the week before. With no warning, he was one of 18 people laid off. He had a wife who worked part time and 3 kids.
This is a good topic for any mortgage blog because “Larry” was even more angry at himself because he never made the time to stop and refinance his mortgage loan. He said his rate was 6.75%. He was planning on getting to it, but kept putting it off and putting it off.
Being able to refinance these days with the really low rates is a huge gift to all those who can qualify. So many people can’t fit the requirements. But if you know you have the income, credit and equity requirements, don’t put off refinancing. You may be looking a gift horse in the face today, but tomorrow could bring surprises.
Losing a job is just one thing that can kill (or damper) a successful refinance. There are many others. Don’t let it happen to you.
Here are other obstacles that have suddenly blocked a borrower’s refinance OR caused the borrower to get a higher rate – borrowers who were recently more than qualified:
- Changes in credit and credit scores
- Late payments to creditors, especially the mortgage
- Changes in lender programs and guidelines. Lenders are still in a crisis mode. As lenders look to protect their bottom line, there are constant changes.
- Drop in home value
- Change in “type” of employment
- Employer fails to verify that employment “is likely to continue”
- Increased debt obligations
Procrastination has caused many borrowers to miss out.
Does it sound like anyone you know? Don’t let it happen to you.
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