As Americans strive to regain their financial footing amidst Covid-19’s negative economic impact, many find themselves struggling to make ends meet. In fact, even though most states have placed a moratorium on evictions and negotiated mortgage forbearance with lenders, these might not be enough to relieve people of their financial burden and allow them to keep their homes. This is why a lot of people turn to mortgage refinancing, which helps them access funds during this health and economic crisis.
Are looking to remortgage during the pandemic? Here are some of the things that you need to know first before you make the move.
Check Your Credit Score
Knowing your credit score will help you identify which remortgaging options will be best for you. This will also help manage your expectations in terms of interest rates and terms as well as other factors. There are several ways to check your credit score online, but take note that most mortgage lenders use the FICO credit score in processing mortgage applications.
Lenders used to require a FICO credit score of 620 to qualify for a mortgage. But, recently, they have set higher standards due to the uncertainties brought by the health crisis. For example, JP Morgan and Bank of America now require at least 700 for your mortgage to be approved.
Look for the Best Rates and Trusted Lenders
Mortgage rates are currently at their record low, but they tend to fluctuate daily. As such, you need to do your homework first and find the best rates. You should also look for lenders who are trustworthy and will not hit you with unnecessary fees.
Speaking of fees, you need to be aware of the extra fees that lenders may charge you. Some finance companies, for instance, may offer lower interest rates but charge higher fees on appraisal, origination, and the like.
Expect Some Changes in the Mortgage Application Process
Aside from the increase in the credit score requirement, some lenders may also recheck your employment status before closing and ensure that you are still employed. This isn’t really surprising considering that numerous businesses and industries had to shut down during the pandemic.
Also, due to limited manpower and the enforcement of physical distancing and other health protocols, the mortgage application process might take longer than usual. This means that you have to be more patient while waiting for their application to be approved and process.
Observe Proper Health Protocol During Closing
The usual mortgage closing involves signing contracts and doing some handshakes. However, these have changed during the pandemic. Some mortgage companies now offer digital closing processes to avoid physical contact and observe social distancing.
But, in the event that the digital closing process is not applicable, you and your lender should follow proper health protocols. Wearing masks and observing proper distance should be a must.
Follow health protocols during the closing of your remortgage. (Image Source: Pixabay)
Refinance Your Mortgage in Colorado Springs with Brian Real Estate Group
If you are planning to remortgage in Colorado, we believe you should ensure that you work with a trusted lender. Brian Real Estate Group can help you with that matter!
We have a list of reputable lenders who can assist you with your finance needs. You may get in touch with them directly, or you can contact us at RE/MAX Real Estate Group in Colorado Springs and we’ll help you connect with the right lenders.
At Brian Real Estate Group, our goal is to provide our clients with exemplary service and ensure that they’ll enjoy great value for money. You may connect with us for all your real estate concerns — we can assist you whether you’re buying or selling a home! Check out our testimonials page and see what our clients think about us.