Things You'll Need:
- Credit report
- Closing cost
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Step 1
Check your FICO score. It's easier to refinance with your current lender because you've established a relationship. If you're looking to refinance with another mortgage company, maintain a high credit score. Lenders usually grant prime rates to individuals with credit scores above 680.
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Step 2
Improve your credit history. Having an existing mortgage loan doesn't guarantee an approval. To get approved for a mortgage refinance, maintain an excellent credit history. Pay your bills on time and reduce your credit card debt. This improves your credit score, and you'll qualify for a lower rate.
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Step 3
Save money for mortgage-related fees. If refinancing with your present lender, they might waive a fee mortgage-related fees such as a title search fee. If refinancing with another mortgage company, you'll have to have upfront cash for your application fee, appraisal and title search fees.
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Step 4
Choose a lender. To get the best deal on a mortgage refinance, obtain mortgage quotes from two or three lenders. You can request quotes from mortgage brokers. They work with various lenders, and they'll provide you with no-obligation loan quotes. You can compare refinance offers and choose the lender that offers the lowest interest rate.
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Step 5
Pay your closing cost. Once approved for a mortgage refinance, schedule your closing date. This is where you sign the new home loan documents and pay your closing costs.
