Michigan Mortgage Refinancing

Gem Home Loans has a team of Michigan mortgage refinancing experts who will be more than happy to answer any questions you may have. Refinancing can be a very complex process, one filled with confusion and worry. In fact, for some people, it’s not a lot different from getting a first mortgage. At Gem Home Loans, though, we’ll do all we can to take all the negativity out of refinancing. We’ll take the time to thoroughly explain all of your options and help you make the right decision for your financial future.

How to Increase Your Chances of a Successful Refinance

Michigan Mortgage Refinancing You may think that refinancing your home will be automatic. All you have to do is request it and it will happen. However, some people who have credit issues find that it’s not quite as easy as they first assumed. If you have some blemishes on your credit report, here are a few tips that might help your refinance go as smoothly as possible.

Check Your Credit Report for Errors

A low credit score is a red flag to a lot of lenders. It tells them you’re a very high risk for default. You’ll have to pay higher interest rates as a result. If you have a high credit score, on the other hand, that will show them you’re a lower risk, so you’ll get a lower interest rate.

If your score isn’t where you want it to be, the reason could be that your credit report contains a lot of errors. If that’s the case, these are some of the possible causes.

Your personal information is wrong – You might have a lower credit score simply because the credit report bureaus have something wrong regarding your address, your Social Security number, or employment information. They may even have the wrong spelling of your name. If you see anything wrong, contact the bureaus and have it corrected.

Mistaken account information – Does your credit report state that one of your accounts was closed by the lender, when, in fact, you closed it voluntarily? That could reflect negatively on your credit score. Also the bureaus are supposed to remove missed payments and other negative items after seven years. If your report shows bad debts older than that, contact the bureaus and have them taken out.

Duplication – Check carefully to see if any accounts are duplicated on your report. If they are, that can also result in a lower score.

Whether your refinancing your home or not, you should still check your credit report on a regular basis. If you see something wrong, contact the bureau that issued the report and let them know so they can fix it. The three major bureaus are Experian, TransUnion and Equifax.

Keep Your Financial Documents in Order

Another way to make the refinancing process more efficient is to have certain important financial documents ready to show your lender. This will help prove that you’ll be trustworthy enough to make your house payments on time each and every month. You’ll probably need to provide two recent pay stubs, two W-2 forms and two recent bank statements as well.