Q: Can I refiance if my home is currently for sale?
A: You can refinance as long as your home has not been for sale within the last six months.
Q: Will a prepayment penalty affect my refiance?
A: Prepayment penalties on your existing mortgage could make refinancing more costly. Check the details of your current loan agreement and be sure to factor in the cost of any prepayment penalty when you consider the benefits of refinancing.
Q: Do I need to get an appraisal when I refiance?
A: Yes. However, if you're a current Bank customer you may not be required to get an appraisal.
Q: Can I complete a prequalification I've already started?
A: No. You won't be able to return to an incomplete prequalification form. We've made the prequalification form short and simple so that you can complete it in less than 10 minutes.
Q: How does a refiance closing work?
A: The refinance closing is handled the same way your loan was closed when you first purchased your property. After your loan is approved, you'll receive copies of documents you'll need to sign at closing. Depending on where you live, the closing takes place at the office of a closing agent or it could involve a meeting where all related parties are present.
Q: Can I pay my mortgage online?
A: Yes.
Q: What is a short sale?
A: This is the fastest-growing foreclosure alternative. Many banks will allow a short sale, in which the home sells for less than the amount of the loan. This is attractive for lenders because they lose less money than in a foreclosure. Also, short sales generally take less time than foreclosures, so the banks don't have to carry the properties on their books as liabilities.
And it's attractive for homeowners because the impact on their credit is far less than in a foreclosure. It stays on their credit reports for only two years, as opposed to seven years for a foreclosure, and often isn't a barrier to purchasing another home.
Short sales are paperwork-intensive, and there are many, many details involved. If you're considering this option, it's critical to work with a trained real estate agent who knows all the steps required to successfully complete a short sale.
RE/MAX leads the real estate industry in agents who've completed the Certified Distressed Property Expert (CDPE) course or other specialized training. They understand the intricacies of these transactions, and they'll be able to advise and counsel you every step of the way.
Q: What is a loan modification?
A: While only certain homeowners will be able to take advantage of this alternative, it is your best option because it keeps you in your home and preserves your credit rating.
Your lender may be willing to modify the terms of the loan, whether it's reducing the principal, lowering the interest rate or other creative strategies to make the loan affordable for you. As part of the stimulus package, the U.S. government has programs to provide incentives for banks that use this strategy as an alternative to foreclosure.
If you have any more questions, please feel free to contact us.
We will be happy to help you with any other inqury that you may have.