Best Mortgage Refinance Companies in Moreno Valley

Frequently Asked Questions

• Introduction

  Refinancing a mortgage can be a complicated process, and hiring a mortgage refinancing broker can make it simpler and faster. There are several things you can do to protect your interests and help your broker complete the process for you.
  

  
  

  Check a potential broker’s online reviews to find one with a good reputation. In addition to the opinions of past clients, check to see if a broker has an online portfolio, which can support the reviews you find from past clients to show a broker’s trustworthiness. This can also help you establish if a broker has handled financing for properties similar to yours.
  

  
  

  Get a written summary of a broker’s rates before committing so you know exactly what hiring your chosen mortgage refinance broker will cost. Find out which lenders work with your broker and what information they need to successfully refinance your mortgage.
  

• What documents should one applying for a mortgage refinancing pre-approval in Moreno Valley prepare?

  When applying for a mortgage refinancing pre-approval in Moreno Valley, one should prepare their Social Security number, tax records, employment information, and wage receipts. Any documents that show their net and gross monthly income, the amount of money they have in savings, and financial account details may also be needed. Mortgage companies may inquire about the homebuyer's existing debts and their details.

• How is a mortgage pre-approval different from a pre-qualification in Moreno Valley?

  A mortgage pre-approval is a written document indicating that you are approved for a loan amount under specific terms and interest rates. It clearly states the maximum amount of loan you can apply for in Moreno Valley. It involves a thorough assessment of your finances. Meanwhile, a pre-qualification does not entail a comprehensive evaluation of your personal finances. Thus, it merely provides an estimate of the house price you may be able to afford.

• When should a homeowner consider refinancing their mortgage in Moreno Valley?

  Homeowners in Moreno Valley should consider mortgage refinancing when a new loan offers a lower interest rate than their current one. This can also shorten the time they need to pay off their debt. Refinancing can also work for those who have built significant home equity, which can be used to fund other expenses, such as property renovations or medical costs.

• What are the two categories of conventional loans in Moreno Valley?

  Conventional loans in Moreno Valley can be either conforming or non-conforming. Conforming conventional loans follow the guidelines established by Fannie Mae and Freddie Mac—federally backed home mortgage companies. These usually require a 20% downpayment. Meanwhile, non-conforming conventional loans have different guidelines, depending on which entity is giving out the loan. Downpayment and interest rates could be higher or lower than conforming ones.

• What does it mean when the borrower "locks in" the interest rate in Moreno Valley?

  When the borrower locks in the interest rate, meaning the interest rate will remain the same for a specified period. The rates of mortgages change over time, sometimes abruptly. If the interest rate unexpectedly spikes during the loan application process, the borrower's mortgage payments will increase, adding to their financial strain. To prevent this situation, lending companies—for a fee—may offer borrowers in Moreno Valley to lock in the mortgage interest rate.

• How do you refinance a mortgage?

  Decide why you’re refinancing, such as to get a lower interest rate, pay off your loan faster, or to get a lower monthly payment. Share your credit information with your broker along with information about the equity you have in your home. Review your mortgage refinance broker’s quotes and choose the best loan terms.