Step 2: Preparing Yourself
Home equity loan refinancing is
practically the same process that you went through when closing your
initial mortgage. That means you will need to do some work
before signing with a lender. Your first step is to get all
the paperwork together that you will need to show your lender.
Everything stays the same as when you closed your original loan. You
will need documentation of your annual wages, employment status, and
existing account information. Other than this primary
paperwork, your lender will inform you as to what you specifically
need. If you happen to be self-employed, you will need to
provide copies of your federal income tax returns for the previous
two years. You may also need to show a profit/loss statement
and a personal finance declaration. Be prepared to fork over a
couple checks in order to obtain a credit report and updated
appraisal if you have not done so already.
Fixing Up You Credit Report
It is a good idea to get a copy of your credit report before you sit
down with a lender. The reason for this is because of possible
errors or even mistaken identity issues on your report. The
three main credit bureau's are Equifax, Experian, and Trans Union -
and you should request copies from all three to check for
continuity. If you happen to find discrepancies, follow up
with the appropriate steps listed on our page titled "The Keys to
Guarding Your Credit History".
In the meantime, do all you can to
polish up your credit history. If you have open credit
accounts, combine as many together as you can while closing the ones
you do not need. If it is possible, pay your credit bills down
to half of their maximum allowance while maintaining your current
payemnts with punctuality and consistency.
Home Equity Loan Refinancing Guide