How to Shortlist Refinancing Companies?

When you want to refinance your mortgage, you will be able to deal with the lender directly. However, it is better to hire a broker if you are looking for a new mortgage. A good broker will help you find the best possible deal and guide you through the process. But how do you choose a good broker? How do you know if they are trustworthy or not? Here are some tips on how to shortlist the refinance companies with the best auto refinance rates:

Find All the Legit Companies

To ensure that the company you choose is legit, look for more than just a good interest rate. “Compare available potential lenders,” as Lantern by SoFi advisors has to say. Here are some questions to ask before signing on with any lender:

• Do they have a good reputation? If so, what kind of reputation do they have? The best way to answer this question is by looking into their online reviews and checking for licenses and certifications on their website.
• How long has the company been in business? You want to choose an established business that will be around after you’ve refinanced your loan. Look up any information about the company on Google or in the Better Business Bureau if it isn’t listed on its website or elsewhere online (and make sure it’s not fake!)

Get Your Credit Score

Getting your credit score is the first step to getting the best deal on a refinancing loan. A lender will use this number to determine whether or not they think they can trust you with their money and, if so, what interest rate you should be charged.

There are many different places where you can get your credit score. It’s important that you choose one that only provides an actual FICO score because other scores may be inaccurate and irrelevant (the “FICO” stands for Fair Isaac Corporation).

Calculate Your Repayment Scheme

Finally, you need to calculate how much you can borrow. For example, if your current home loan balance is $300,000 and your LVR (loan-to-valuation ratio) is 80%, then you have a total of $240,000 left on the mortgage—the maximum amount of money you could borrow is $240,000. To calculate this figure, simply subtract the current value of your home from its previous value when it was purchased.

Know Your Mortgage Situation

Before you can even think of getting a loan, you must know your mortgage situation. This makes it clear as to who will be lending money and on what terms.

Here are some things to consider:

• Check your current mortgage. Don’t just look at the monthly payment; also check for any other charges associated with the loan, such as origination fees or early payment penalties. These could negate any benefits from refinancing.
• Check your credit score. The better this is, the more likely it is that lenders will give you a good deal on their interest rates and fees!
• Check your income and savings/investments if applicable.

Remember to keep your eyes open for the right refinancing company. You should look out for the right rate, a suitable repayment scheme, and, more importantly, whether they offer you other services as well.