You’ve reached the point of retirement, and you’re considering refinancing your mortgage in favor of different terms. While there’s no problem with that, banks are getting extremely strict about who they choose to help. Nowadays, you can have a considerable amount of assets, but if you don’t meet their criteria in two particular areas – credit score and income – you could find yourself facing a roadblock. So what are five things you need to do before and during the process of refinancing your mortgage.
Check your credit score
As mentioned above, your credit score plays a huge part in the process of refinancing your mortgage. If it’s not where you would prefer it to be, then you may be better off waiting until you can clean it up a bit and raise it to the point where a loan officer would consider it excellent, especially if you don’t have a substantial amount of income coming in.
Determine your total amount of income per month
In addition to your credit score, your income is the other main half of the equation when it comes to refinancing your mortgage. What you may consider a good amount of income may not be deemed enough by the bank. It’s better if you have a two-income household; the chances are higher that you’re going to be considered a risk if your income is only from one person. Pull together the paperwork from your social security and any other type of income so you can show it to the lender and can see where you stand.
Keep talking to loan officers
Not all loan offers are going to put in the time to help you refinance. Some are going to make as little effort as possible and, at the end, say there’s nothing they can do. However, that doesn’t mean that’s the end of the story. Keep talking to different loan offers and get new opinions. You could end up coming across one that will take a different approach and be able to help you.
Do your own research
As knowledgeable as loan officers are, they don’t know everything. It’s better to do as much research on your own as possible, not only for your own sake, but also so you can take your findings to your loan officer and see if it could be of any help and interest to your particular situation. Take your time to learn as much as possible. The more informed and prepared you are, the better it is for all involved.
When you’re retired and want to refinance your mortgage, the most important thing is to take your time and not jump right into it. Gather all your paperwork, learn as much about the options available to you as possible, and do what you can to improve your financial situation. Before long, you could find yourself just where you want to be.