Here are a few things to avoid when you’re going to refinance your Edmonton home.
Note: Remember, you can access all our available Homes For Sale in Edmonton through our Edmonton MLS Listings page.
- NOT DOING RESEARCH. Yup! Simple as that! Before you start making calls to those mortgage firms, you MUST do your own work and analyze the key factors that will affect your refinancing venture such as your current credit score and home valuation.
You can get FREE home valuation here:
- TAKING ON NEW DEBT. This is a big NO! Mortgage firms investigates your credit standing upon your application and double checks it ahead of your scheduled settlement. Taking on new debt would affect your refinancing application in a negative way. It could lead to delays or even rejection.
- STICKING WITH YOUR CURRENT MORTGAGE LENDER. Sure, you’re already comfortable with your lender and are happy with their performance so you’ll get your refinancing from them.
This simple gesture of loyalty could cost you a pretty penny.
Never speculate that your lender would provide you with a “specialized” rate. Remember, they are in this for the business. What you have to do is to go window shopping and compare and contrast refinancing rates from other mortgage firms. Rates fluctuate on a daily basis so its best that you do this activity on a single given date.
- FAILING TO RECOGNIZE ADDITIONAL COSTS. Your ultimate goal in refinancing is to lower the monthly payments. Review all your mortgage documents and check if you have incurred any penalties. Also, double check the closing costs.
The refinancing process usually takes 90 days, if something goes wrong within that time frame, you have the right to rescind the application. You will usually be given 3 days to cancel a deal when you opt to refinance using a different mortgage firm.
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