Qualifying For Re-Finance On New Mortgage- A Review

Considering the low interest rates for long-term mortgage is the first and foremost thing. Of course as a matter of fact the Federal Reserve raising short-term interest rates continues. Looking for below 6% interest rate some of the important points given by the author is quite helpful. I have given the Check-list below in order to make it easy for people looking for re-finance on new mortgage.
1. Check your credit Report
2. Cleanup negative items in your credit report.
3. List all the debts and payment details
4. Arrive at the new proposed monthly payments including the new mortgage
5. Make sure debt-to-income ration is below 38%
6. Keep ready the bank statements, 401(K) statement, Insurance details and other cash value statements.
7. Search for good interest rate and lender.
Some more information are given on each point so as to where and how to get these information and compile it to your requirement.
Link given here to obtain a free copy of your credit report and credit score http://www.trimyourdebt.com/GetYourCreditScore.aspx. The hint is if the score is above 700 you will get the best interest rate and below 680 means a higher risk for the lender and may charge higher rate of interest.
Cleaning up of any incorrect or negative information in the credit report will be the next step and the information on how to cleanup is available at http://www.trimyourdebt.com/GetYourCreditScore.aspx
Arrive at the sum of all payments including proposed payment of the new mortgage by listing out all the debts listed in the credit report. For this purpose you may use the formula, mortgage interest rate of 6% you can take $6 per 1000 dollars of loan. This is best illustrated by an example taken here: if you need $150,000 mortgage, multiplying 6 times 150 that equals $900 per month. This has to be added up with other monthly payments of the other debts listed in the credit report.
Calculate the debt-to-income ratio and see it is less than 38%. For this you have to consider the latest paycheck. The total debt divided by the gross monthly income is the ratio required. If the ratio is high you pay back some of the debts to bring down the ratio. Consider following the debt plan given at http://www.trimyourdebt.com/welcome_budget_short.aspx.
Most important is to furnish the bank account statements, insurance details, 401(k) statement and any other cash value statements to establish from where the down payment is coming from.
With this you are now ready to look for a lender giving you the best interest rate. A free rate quotes can be obtained from http://www.trimyourdebt.com/MortgagePlanner.aspx
Good luck.
Source: www.securedhomejobs.com/finance/