Hilde's Mortgage Blog

We just saw another round of increases in add-on fees for less the excellent credit scores. The target for your credit score should be 740 or higher for your mid score. For two borrowers the lower of the mid score between the two is used.

Having said that, it is getting more important to pull your own credit report and review for inaccuracy. Discovering errors at time of financing may not give you enough time to fix those errors in time to take advantage of a good rate lock. 

Many borrowers are able to benefit from these low rates we are seeing lately. The key in maximizing your rate lock is of course to be read to lock.

Just talking about refinancing isn't going to put you in a position to lock the rate at a moment's notice. You want your file ready to the point that all you need to do is make that phone call with the instruction to your loan originator to lock the rate NOW!.

So, how do you get there? Get your application completed, submit all needed credit and income documents right away (not all refinanced have the same requirements). Consider getting the appraisal ordered right away. Yes, it will cost you some upfront money for that, but the appraisal is generally good for 4 months.

With all of that in place, you are in a good spot to lock as soon rates have reach the point when you want to lock.

Lastly a word about timing the market. It is a game in hindsight! You will know when the low point was after it has passed. Rather then hoping every day for yet another dip in the rate set your target rate. Act when it comes available.