Prime Rate

also known as the Fed, National or United States Prime Rate,
from the interest-rate specialists at www.FedPrimeRate.comSM

Saturday, June 10, 2006

How To Qualify for The Best Possible Rate When You Refinance Your Mortgage? For Most Lenders, It's All About Documentation

If you are in the market for a mortgage refinance, it's critical that you have all your documentation ready before you apply for the loan: being well-prepared with the right documentation is key to getting the best possible interest rate with just about any mortgage refinance provider.

For more tips, here's a snippet from today's press release:

"How do you qualify for the best interest rate when refinancing your home mortgage? To lenders, it’s all about documentation. The better you can document your income, assets, and employment, the higher your chances are for getting lowest interest rates. Here are some tips on qualifying for the best rate when refinancing your home mortgage.

When applying for a home loan, you want to have your paperwork in order, ready to be provided to your loan officer. If, for any reason, you are unable to document some of your income or assets, let your loan officer know at the time of the application. You don't want to waist time chasing something that you don't qualify for. You want your loan approved, your rate locked, and your loan funded. Here are some of the most important qualifying criteria.

On conventional loans, your monthly mortgage payment, together with minimum monthly payments on your other financial obligations, such as credit cards and auto loans, can not exceed fifty percent of your gross monthly income. Your income can be verified with your W2 or 1099 forms, or your tax returns. On top of that, you have to verify that you have two months worth of your proposed monthly mortgage payments. Assets must be liquid, such as cash in the bank, 401K, IRA, etc.

If you can not meet all of the above mentioned requirements, you can still qualify for a low rate. But your rate will be slightly higher as you move down the list of available programs:

  • No income, but verifiable assets and employment

  • No income or assets, but verifiable employment

  • No income, assets, and no employment"

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