It is a good question and has a simple answer. Due to the major changes in lending over the past two years, it has become more difficult for consumers to refinance. In addition, factors such as credit, loss of a job and no home equity have made the problem already worse.
Right now, it’s impossible to get a mortgage if you are not working. When you apply for a loan, your bank will estimate your credit, income and home equity. If you meet all the criteria, your employment is next. The underwriter or the decision maker will look at several things including length of time with your current employer, the gaps between jobs and whether your current job is related to your past one. It is for these reasons that refinancing does not work or is ineffective for many homeowners as the economy has affected everybody negatively in some way.
So what is the best solution for a person who has lost his job and looking to negotiate a lower mortgage rate? A loan alteration is the answer. It has the same benefits as a refinance. The results are long-lasting and qualifying is more relaxed. Although the time of action can be done directly with the bank, many homeowners are discovering that they can unprotected to far better results by hiring a professionally qualified loan alteration company.
Although edges have become more agreeable to loan modifications, you must present a very strong, substantial case to not only ensure success, but to maximize your payment reduction. The best way to do that is by using a reputable company. Think of it this way. If you have ever encountered a serious situation in which you needed to go to court, would you go alone? Of course not! Having legal representation in a court room ensures, prepares and gives you the confidence that you have taken all the necessary steps to ensure the best outcome. The same rule applies here. Remember, your lender is only looking out for their best interest, not yours. Much like in a court room, if you are not prepared, you are not going to be happy with the outcome.
the time of action of qualifying for a loan alteration is completely different than that used for a refinance. Credit, income, equity in your home and employment are evaluated differently. In addition, your hardship is given great consideration. Although it may seem like a simple course of action, it’s not. To make matters already more complicated, the ‘rules’ and guidelines chance regularly. Many of the edges are understaffed and can’t manager the arrival of consumer inquiries. This creates confusion and mistakes.
A good loan alteration company already has established relationships with almost ever lender. They know who to call and how to avoid the maze of customer service representatives. In addition, by experience and repetition they know exactly how to build a successful alteration plan for you and one that will be approved quickly. Your home is the focal point of your life, and such an important task should not be done without specialized help.
So, if you are wondering about how to negotiate a mortgage refinance when you’ve lost your job, don’t worry, just modify your loan.