2009 Refinance Tips….

#1: Work with a Reputable Lender. No Exceptions.

The #1 worst mistake when refinancing is believing a too good to be true offer from a no name bank. In this tough market desperate brokers will tell you anything you want to hear. The best liars will gain your trust easily. They live off the classic bait and switch. Big banks follow the new strict up front disclosure policies correctly. No name brokers will lie and print out incorrect initial paperwork to back it up.

#2: Lock your Rate for 45 days Minimum.

Loan officers aren’t so worried about getting you the best deal so they quote you on a 30 day rate lock to get your business. 2 years ago loans were done in as little as 2 weeks. Today they take up to 60 days. It can cost 3,4,5, even 10 thousand dollars to extend a rate lock. Get a longer rate lock up front for a few hundred dollars extra. It’s not an option. It’s the only way to go in 2009.

#3: Negotiate with the Bank or Broker. Negotiate the Best Rate and Closing Fees. Make the Bank or Broker Pay for the Appraisal! Here’s Why…

Unfortunately today maybe half of all submitted loans with appraisal reports end up dead. Many loans die after the appraisal crosses the underwriter’s desk. The underwriter reviews the appraisal report and then decides he or she doesn’t not want to lend on the property for one reason or another. If you have paid for the appraisal up front you’re out $350-500 dollars for a bad appraisal that’s owned by the bank. That’s right, any appraisal used for a mortgage is property of the broker or bank.