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3 Common Problems with Refinancing a Mortgage

3 Common Problems with Refinancing a Mortgage

Refinancing a mortgage is a common practice for homeowners who need a loan for various reasons.

3 Common Problems with Refinancing a Mortgage

Unexpected expenses could pop up and put you in the need for funds, one of the most common reasons people look into refinancing a mortgage. Midland Mortgage Corp. is here to help you understand what refinancing entails and help you decide what is right for you.

Here are three common problems you can easily avoid as you go to refinance:

1. Making Major Purchases Hurts Your Credit
Buying a new vehicle or planning a European vacation can be costly, and many banks fold up and pull mortgages just when you feel safe. The best thing to do is discuss any impending purchases with a loan officer at Midland Mortgage Corp. to ensure your credit is in good standing and whether or not you should go ahead with your purchase.

2. Failing to Pay Off Other Loans Makes Your Debt Load Too High
Pay off other debts before applying for a loan. Getting a new job to pay off extra debts is not always the key. Banks don’t recognize a new job’s continuous income until a two year span. Paying off additional expenses lets us know that you are conscientious about spending and make you eligible for refinancing.

3. Neglecting Your Credit Score Can Leave You with Unpleasant Surprises
Be sure that your credit report is accurate and that you get a copy of one regularly. Lenders have tightened up on credit scores over the years and the least mistake could spoil your chances for refinancing. Getting discrepancies corrected takes very little time. As soon as those are cleared up you can move on with your new loan.

If you’re looking into refinancing a mortgage, click here for the next step.

Posted Oct 10, 2013 by Midland Mortgage Corporation