Preparing for a Mortgage Refinance in Wisconsin Illinois Minnesota Florida

With the record low mortgage rates making headlines on a regular basis, now is a good time to consider refinancing a home loan. Here are a few guidelines to consider when preparing for a refinance.

1. Your Current RatioThe first thing to find out is where you stand. Find a recent billing statement from your lender or call them and get the most recent balance. Next, determine your home's worth. If homes have sold lately in your area you should have an idea of how much your house could sell for. If not, check with a local realtor and ask for an estimate. Next, take your current value and divide it by your current mortgage balance. Hopefully this ratio will be less than 90%.

2. Consider 2nd mortgages or Lines of CreditIf you have a 2nd mortgage or a home equity line of credit then you will need to add that current balance to your first mortgage balance from the previous step. This will give you an accurate picture of your situation.

3. Get your documents togetherOnce you have made these calculations you will need to get your financial paperwork in order. This will include copies of the following:1. Copies of pay stubs from the last 60 days2. Copies of last two months checking account statements3. Copies of last two months savings account statements4. Copies of last retirement account statements5. Copy of homeowners insurance declaration

Take this information to your broker and allow them to determine the best loan to fit your needs. Following these steps will save time and effort for both you and your lender.