Refinancing is no walk in the park. Committing to this task means also committing yourself to mountains of paperwork and an unending stream of back-and-forth with your bank. As much as you expect its grueling stages, we have found a way to help you go through a much simpler procedure.
Refinancing is when you get a new home loan from another lender to replace your old one. This option allows you to fine-tune your loan to fit your evolving lifestyle. When the cost of your loan is reduced, it may be possible to save money and shorten the term. Refinancing may also allow you to pay for renovations, acquire a new automobile, or even provide your children’s education.
Now, let us give you a detailed walkthrough of the simplified approach to refinancing your home.
1. Put your interests at the forefront of your decision-making
Refinancing will help you reach your goals if you have explicit knowledge of why you want to refinance. Before making the switch, you must understand what is most important to you. Does it mean having a home you can settle down in when you’re old, for instance?
2. Assess your current loan
After evaluating your existing loan, check your current loan’s details, such as the kind of account you have, the ongoing fees, interest rates, and other charges you are due. For further questions and concerns, never hesitate to ask your lender.
3. Do some research and compare the best deals
You need to be aware of the three Fs: fees, features, and flexibility. Look beyond cheap costs, and make sure the loan will provide you with assistance and service. Look into loan features like an offset account or a redraw facility, affecting your overall mortgage payment. Also, consider flexibility and check if your new loan offers extra repayments and no early payoff charge.
4. Communicate with your existing lender and request a better offer
When you’ve found out what else is available, contact your lender and see what kind of assistance they can provide. Your lender will be the best person to walk you through alternative loan options that better suit your present financial standing.
5. Make accurate estimates
If you refinance, your lender will almost certainly impose a discharge or “exit” fee. So, estimate the expense of quitting your previous loan and determine whether any upfront fees are involved when switching lenders. You should look into using resources, like an online mortgage calculator, to perform all the necessary calculations for you. Remember that fixed-rate loans usually come with break fees, which vary depending on which bank you do business with.
6. Finalize the process
To complete the application, you will need to supply evidence that confirms your facts, such as your name, income, assets, and obligations, as well as any documents that identify your mortgaged property.
After you’ve communicated with all parties (lenders) involved, all the appropriate paperwork will be processed in the background. In two weeks or so, your new home loan will be settled and completed.
Refinancing your home loan doesn’t have to be complicated. Avoid the miserable experience by doing your homework ahead of time. To fully ensure that you are getting a decent deal, make sure you do a home loan health check every few years. With the right lender and the right bank, you may seek the convenience and reassurance of being in good hands that caters to your specific needs and delivers exceptional value.
Are you looking for mortgage refinancing services in Perth? All of the Finance Managers at FinanceCorp are fully qualified, trained, and experienced mortgage professionals who live and breathe finance. With us, you’ll achieve your dreams and buy a home with zero apprehensions. Enquire today and get a better loan!