Many people are asking me about what they need to do to refinance their home. Today I thought I would share a few things to think about before you make the decision to talk with a mortgage lender about refinancing your home.
How to Start the Refinancing Process
To refinance your home in Raleigh, Cary or anywhere in the Triangle area you will have to reapply for the mortgage just like any new home buyer would. You will have to demonstrate solid credit history, prove to the mortgage company that you still have adequate income to quaify for the lower payment by providing tax returns, pay stubs and bank statements. I know this doesn’t make a lot of sense if you have been paying your mortgage on time and are refinancing your Raleigh home to have an even lower monthly obligation but, never the less, your have to provide documents and be approved all over again.
The Next Step in Refinancing: The Appraisal
Last week during a listing appointment at my office I met with someone who tried to refinance her home in order to lower her monthly mortgage payments. Like many people she had a first and second mortgage and contacted a local lender thinking she would not any problem refinancing. However, her home did not appraise for what she owed. She was stuck unfortunately in a cycle many homeowners in our Raleigh area are facing.
In order to refinance North Carolina homes have to be professionally appraised at a high enough value to provide the lender with adequate security. This is where many Raleigh homeowner’s are hitting a brick wall on refinancing. Appraisal guidelines have signifacantly tightened and Raleigh real estate has not gained value the past 24 months. This is keeping many home owners from being able to save money each month by taking advantage of a historical opportunity of low interest rates.
To get an idea of your real estate value in the Raleigh, Wake County area visit www.Wakegov.com Type in your address and a search of recent home sales around your address will be displayed. You can also experiment with www.zillow.com to get a zestimate. However, the best way to determine your Raleigh real estate value is to call me or a professional appraiser.