Mortgage Refinancing: A Better Way of Dealing through Good Business Practice
In everything that you do and whoever you deal with, you are expected to be as professional and as ethical as possible. Especially in multi-businesses and multi-companies, good practices among business partners, clients, customers and investors should be given a closer look.
Business ethics is a form of professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.
After the economic downfall that happened few years ago in the United States, lenders, including mortgage lenders have been too keen and cautious when it comes to the qualifications of their borrowers. That’s why today, may it be a lender or borrower, it is an advantage or a plus if both possess and practice good business conducts. This makes all the mortgage processes including paper works and other documentations easier and faster.
Mortgage refinancing more or less has the same processes involved as with mortgage application. It is therefore necessary to be responsible, cooperative and pro-active when it comes to the qualifications, terms and processes that need to be met until the refinance got approved and closed.
What are the Best Practices in Refinancing?
1. Always be prepared. Secure up-to-date financial information and understand the market in order for you to have the ability to move quickly.
2. Work out what you want before you talk to your lender. Determine what level of debt/mortgage you want, what security you are willing to provide and what covenants or agreement you are willing to accept.
3. It is important to diversify. Make sure you not reliant enough on a single source of fund.
4. Repair your credit. Get a copy of your credit report before beginning the refinancing process. This will allow you to have ample time to clear up any mistakes and put your best foot forward in the qualifications process.
5. Contact many different lenders. Rates are at historical lows, but the gap between the best and worst deals can be as much as a full percentage point. With pipelines near capacity, some large lenders have been raising an effort to hold down volume while boosting profits. It is important to shop around and contact as many lenders as possible so you’ll be able to determine which one would be comfortable for you taking into considerations your evaluation of your own qualifications. This is to ensure that all requirements will be met and the refinancing process would be quick and hassle-free.
6. Identify the risks inherent in your mortgage and make sure to have strategies in place to minimize it.
There has never been a better time to refinance your mortgage. Rates are at record lows. The government is devising new programs to help homeowners. The economy and job market are improving. In theory, these factors should be producing a boom in mortgage refinancing.
You only got one chance to make a good first impression. So make sure you are well prepared before you speak to the lenders.