Is now the perfect time for a home loan refinance? Take it from the top San Diego home loan company, you might have a better shot at mortgage refinancing now than you’ve had before. While it’s true that refi rates have risen over the last few months, those higher prices could be seen as the perfect opportunity for the savvy home buyer.
How so? Well, because the demand is falling lenders are now scrambling to find as much business as they can during this dry spell. That means that if you were turned down for a refi as little as a few months ago, you might try again now — lenders could be much more willing to take another look at your profile this time around.
There might be an overlay before we reach our destination
Now, we’re not saying that everything’s coming up roses for borrowers — mortgage standards are still pretty tight compared to where they were before the real estate market crash. And the Fannie Mae and Freddie Mac official mortgage guidelines haven’t gotten any more lax, either. There is one area where borrowers might catch a break, though: overlays, or the guidelines that each individual lender has in place, in addition to Fannie and Freddie’s rules.
Now, while refi applications are becoming more scarce, some lenders are rethinking their own overlay requirements; many going so far as to give less qualified borrowers — who they might’ve turned away a few months ago — another, more serious consideration.
Hope your credit’s (now) up to par
Another reason you may have been turned down for a home refi in the past could have to do with your credit profile. Give it another look now and, assuming you’ve taken steps to repair your report like paying your bills on time and such, you could be looking at a much rosier score.
Remember that your credit profile changes on a weekly (sometimes daily) basis, so if your lower credit score was a reason lenders turned your away, spending those intervening months working to repair it could be the boost you needed.
Wanna see if you’re ready for your own home refi? We’ve got a whole team ready to work for you!