With mortgage interest rates so low, many homeowners are looking into refinancing to save money. But some are concerned that they might not qualify for a refinance in Utah. How do you know if you are likely to be approved for a refinance in Utah? The mortgage lenders at Integrity First Lending of Salt Lake City give you some helpful information on ways to improve your odds.
If not much has changed in your financial picture since you bought your home, your application to refinance your home in Utah will likely be approved without issue. However, the truth is that uncertainty in the market has changed the qualifications not just a refinance, but also those seeking mortgages in Utah, potentially making the process more difficult for buyers.
Risk increased exponentially in 2020 as the pandemic bankrupted tens of thousands of businesses and individuals. Recovery has been slow and uncertain, so lenders have been taking fewer chances on applicants.
Those in the least rosy positions now include anyone looking to refinance their home, buyers or refinancers who are self-employed, and those looking for jumbo mortgages or to buy second homes. Conventional mortgages are slightly harder to get now, but government-backed mortgages such as FHA loans and VA loans remain largely unaffected by the changes.
What affects your ability to be approved for a refinance in Salt Lake City?
If you’re close to the margin, help yourself out by not making any major purchases in the upcoming weeks that will affect the ratio. If you’re able to borrow money from a friend or family member to pay down your debt, this can help as well.
The good news is, inquiring about a refinance in Utah does not hurt your credit, because one of the last steps our Salt Lake City mortgage company takes is running a credit check. We look at other qualifying factors first to make sure an applicant for a refinance in Utah seems like a good candidate.
If we believe you may not qualify for a refinance, we’ll tell you why, and you may be able to rectify the problem, clearing your way toward a successful refinance. Contact the friendly, helpful mortgage lenders at Integrity First Lending today to see if you qualify to refinance your home in Utah.