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5 Steps To Maximize Our Next Refinance

Sweta Chauhan March 03, 2021

You need a 1% drop in your interest rate before a mortgage refinance is a smart play. Over the years this rule of thumb has been passed on by countless financial advisors, mortgage brokers and real estate professional experts.

What is a rule of thumb? It’s a way to fast-track something, a decision or a way of breaking down complex information in order to make a decision, take action or arrive at an understanding.

In a society where we #InstaDemand everything it’s no wonder rules of thumb, including for your mortgage, apply now more than ever. 

 5 key steps to maximize your refinance:

 Stabilize the property

  • Repair or, better yet, replace any major items -- such as a roof, HVAC, or any cosmetic work the property might need
  • Create additional bedrooms: by adding a few walls around a window and putting in a closet, you’ll turn $1000 into $10,000

Simplify your documents

  • Getting approved by a bank for a refinance isn’t a simple 1-2-3
  • The more organized your financial documents the more willing a bank will be to work with you. Having them on a Google drive is a simple, free solution they’ll appreciate

Meet the appraiser

  • People love stories – including those behind your properties
  • Whether you just renovated the property or updated the HVAC, plumbing and electrical, the appraiser only can appraise what they can see

Pull comps of similar properties

  • Often the most important missed step
  • Pulling comps of similar properties, that are priced higher, doesn’t only sell your story but builds on the quality of your property

Keep everyone accountable

  • Simply put – deadlines can make or break a deal
  • As the timeline progresses the 3-2-1 strategy never fails – in the beginning check in every 3 days, during the midpoint check in bi-daily and, as you near completion, check in daily only if it’s absolutely required

Whether your property’s refinance is for completing renovations, buying an investment property or reinvesting the money; by knowing, understanding and practicing these rules of thumb you’ll be able to maximize the return on your next refinance.