Refinancing In Michigan: Mortgage Brokers and a Smooth The Mortgage Process
Come To The Starting Gate Prepared For A Smoother Successful Mortgage Process.
Mortgage rates are near time lows causing refinancing to be the talk of the town. Yet many folks are still hesitant because they are unsure (or are misinformed) on what is needed to get a mortgage. While some people can see the numbers right in front of them on how much money they will save on a refinance, they believe they would rather get a root canal than go through the mortgage process again.
Whether you have already started or are still deciding if you will refinance, you need to be aware of what to expect throughout the entire process to help it go smoothly. That is where we come in!
How To Get Started Applying For A Mortgage
Information Needed For Application
Basic Information: Legal Name, Date of Birth ,Social Security #, Current Address
Two Most Recent Paystubs
Last 2 years of W2's and Tax Returns
Two Most Recent Bank Statements, including retirement accounts
Copy of driver's license or passport (Green card if not a US citizen)
Bring all that information with you from day 1, and we will be able to answer almost all of your questions about refinancing right on the spot! While getting a mortgage may be harder than it used to be, going in with the right mindset and paperwork (not to mention a great loan officer) can make refinancing a very smooth process.
Final step to get started involves deciding if you want to lock in a low mortgage rate or let if float. Check out our guide on determining if you should lock or float your mortgage rate: How To Lock The Best Interest Rate.
Rules For A Investment Property Cash Out Refinance
Did you know there are even exceptions that allow you to take out a cash out refinance immediately after purchasing the home! Here is what you need to know about taking cash back out of an investment property.
If the property was purchased within the prior six months, the borrower is ineligible for a cash-out transaction unless the loan meets the delayed financing exception (see below).
If the investment property was not purchased with the prior 6 months, the max cash-out rule is 75% LTV for a 1-unit property and 70% for a 2-4 unit property.
If you have 4 or more properties financed, then the maximum LTV cash-out limit is 65%.
Investment Property Delayed Financing Exception:
Cash out refinance for investment properties now are allowed immediately if no financing was obtained for the purchase transaction. The following criteria must be met to qualify forthe delayed financing exception:
New loan amount can not be for more than the initial investment that was used to purchase the property.
Investment Property Purchase was an Arm’s Length Transaction(buyer and seller had no relationship to each other)
You can provide the settlement statement which shows no financing was needed for the purchase of the investment property.
Title search which shows no liens on the investment property.
Source of funds for the purchase can be documented with bank statements, loan documents, etc.
Any new loans used as source of the down payment must be paid back on the new settlement statement