Refinancing...It Will Work Differently Than In The Past!

If you are in the market to refinance, you surely have noticed mortgage rates have taken a turn for the better. With this comes increased application volume and many happy customers. It is also inevitable that some people simply cannot be helped. It has always been this way, but with all of the extreme changes, turndowns are becoming more prevalent. Aside from just turndowns we are seeing people ready to refinance, but the rate isn't as low at they thought due to all of the new pricing hits they are receiving (see previous blog).
I bring this up to make one simple point. For everyone who is preparing to apply for a refinance, please set your expectations. Don't take it personal if something can't be done. It more than likely will not be as simple as the last time you refinanced. This doesn't mean it will be a painful process, but the days of anything goes are gone. The one exception is for people who have plenty of equity and are on the very high end of the credit score ladder. The products and options simply are not there to allow us to be flexible and work out a creative scenario for each and every applicant. We wish they were, but they aren't. Remember, we are in the business of doing quality loans. We want to be able to help each and every prospective borrower, but we must play within the rules we are given. Now, don't take this the wrong way and feel like applying for a refinance is a waste of time. We are very good at what we do and if there is a way to save you money on rate or payment, we will find it. You will know straight up what your options are and there is still a good chance that you can be helped. Just be very careful in your personal finances. It is extremely unwise to be sloppy and careless with your finances and assume a refinance will bail you out! The only people getting bailed out these days are large corporations and I am guessing this isn't you! Without the help of a government bailout,many individuals have been able to live carelessly knowing a refinance will save them. Now this philosophy is catching up to them. I absolutely hate breaking it to an applicant that nothing can be done and they are stuck in the situation they are in. Yes, you could have done what you are trying to do 1-2 years ago, but not anymore! It isn't fun, but it is reality.
I hope this information helps and we look forward to hearing from you. Again, don't take this post the wrong way. If you set your expectations correctly, you should be in good shape!

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Professional Mortgage Group, Inc.
"Your Columbia, MO Mortgage Broker"