Earlier this week, I talked about the option of refinancing your underwater home through the government’s Home Affordable Refinance Program (HARP), which has given relief to many homeowners. As a Lake Nacimiento Real Estate agent, I know that there are those in the Oak Shores and Heritage Ranch communities on Lake Nacimiento who find themselves owing more on their home than it’s current market value. But there is hope!
Getting my Certified Distressed Property Expert designation has made me even more aware of what it takes to successfully get out from under the weight of a distressed property, and I’ve been able to help many clients do so! If you are considering refinancing your Oak Shores or Heritage Ranch home due to financial strain or to lock in currently low interest rates, there are a few things you’ll want to be aware of before you begin the refinancing process. Here are five common mistakes you’ll want to avoid when refinancing your Lake Nacimiento home.
1. Over-estimating the value of the home- Although home prices have fallen over the past few years, homeowners still put high value on their homes. As a result, they receive higher-than-expected loan offers. Your Lake Nacimiento Real Estate agent will be able to show you what comparable homes in your neighborhood are currently selling for so you can get a better idea of what your home is worth.
2. Hesitating to lock in low rates- Waiting for rates to drop even lower can be the biggest mistake as there’s no promise that rates will remain low. Take the opportunity now to lock in these historically low rates before it’s too late.
3. Focusing only on interest rates- While interest rates are important, those aren’t the only factors to consider when refinancing your Oak Shores or Heritage Ranch home. Lender fees, loan terms and even lender reputations will play a role in refinancing. Using online tools, such as Mortgage Professor to run all the numbers can be useful to determine if financing is even the right choice for you.
4. Overlooking shorter-term loans- Although the 30-year mortgage loan is the most popular, remember that there are 20 or 15-year mortgages that may be a better option. These shorter loans can save significant amounts of money since you’ll be reducing the amount of paid interest over time.
5. Not knowing what documents are required to refinance- It’s important to know which documents are needed before you begin to refinance. For those of you who haven’t taken out a mortgage or refinanced lately, you may be surprised to find there’s more documentation needed than in the past. Pay stubs, two months of banking and other financial statements, two years of W-2’s are just some of the documents required to refinance.
Being fully prepared to refinance is important! If you have questions about refinancing your home or are interested in jumping into Lake Nacimiento Real Estate market; please let me know!
I hope to hear from you soon!
Grace Borzini
Your Local Lake Nacimiento Real Estate Expert
Oak Shores Realty
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Oak Shores Realty specializes in Oak Shores at Lake Nacimiento properties. Please contact us today to get more information on Lake Nacimiento lake homes. Oak Shores Realty can also provide you an insiders “Lake Nacimiento Buying Guide” with great information including maps and market information.
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