With so many people applying to get a South Florida refinance on their house, the chances of you being the one approved get slimmer and you cannot afford to make mistakes that can completely ruin your chances. So, if you are planning to pay off your current South Florida mortgage with refinancing, here are some things you shouldn’t be doing:
1. Don’t skip your current mortgage lender
Don’t skip your current mortgage lender without asking him for a South Florida refinancing quote first. With low mortgage rates available today, there are high chances your lender will offer you a better deal with fewer complications involved.
2. Too many bills
Too many bills, especially unpaid ones, are a big reason why your lender will turn you down when you apply for refinance. If you have a lot of regular monthly payments that you already have to make, there are high chances you won’t be able to fit in more mortgage payments to your budget, resulting in a declined application.
3. A bad credit score
A bad credit score, a lot of credit or maxed out credit lines are some other common reasons that a South Florida refinance application can be turned down. High debts indicate difficulty in making ends meet, which might lead to you defaulting on mortgage repayments.
4. Avoid going on a shopping spree and making large purchases on credit
Once you have applied for a refinance, avoid going on a shopping spree and making large purchases on credit. If you get more credit, especially if you are getting an auto loan or student loan, this would mean a significant change in your financial situation, making your lender decide against the mortgage.
5. Unfinished remodeling project
Another mistake that can lead to a rejected South Florida refinance application is an unfinished remodeling project going on at your house when the lender sends someone for inspection. It can affect the value of your house and decrease the chance of you getting a refinance.
So, if you really want your refinance application to be considered seriously, you should look out for these common mistakes. Choice Mortgage Bank is one of the best South Florida mortgage providers that offer mortgage and refinance options. If you are looking for a completely transparent and convenient mortgage procedure, CMB is just the place for you.