Planning to refinance your mortgage?

A rush to refinance mortgages in light of the super low mortgage rates is facing a logjam of applications. According to Katy Mclaughlin writing for The Wall Street Journal, you need to take these steps:

1. Unfreeze your credit. Many people froze their credit to protect against fraud. Now is the time to thaw your credit history. Freezes and un-freezing are now free. You should be able to unfreeze your account online but plan ahead in the event that you need to send documentation to a credit bureau to prove your identity.

2. Get Appraisal Ready. If planning any home improvements complete them before the appraisal or hold off until afterwards. "Purge clutter and spiff up the home as much as possible."

3. Call your Accountant. if self-employed... you may need a year to date profit and loss statement from a CPA. This can be time consuming during tax season when CPAs are very busy (despite the recent roll back of filing to July 15). Request digital files of of your last two years of business and personal federal tax returns.

4. Examine Trust Documents. IF the title of the  home is held in a trust, some lenders need a full copy of the trust while others need only specific pages. It helps to have a digital copy. Review the document to be sure there are no typos, especially in name spellings. If there are you need to have the pages redrafted by the trust attorney and notarized.

5. Go on a Credit Diet. DO NOT open any new credit accounts during the mortgage process. Doing so will slow down the process.

Remember to freeze your credit after the process is complete.
Expect delays as the volume of applications swells and coronoa virus slows the process.

Getting the Most From a Bank Account

FDIC Consumer Newsletter Features Tips on Getting the Most From a Bank Account.

Other topics include managing a mortgage and adding others to accounts.            

It’s important to have a banking product to handle everyday financial needs that range from making payments to getting paid. However, with the many different choices available, consumers can use a little help understanding how to select the most cost-effective options. The Summer 2012 issue of FDIC Consumer News features tips on how to choose and effectively use a bank account for routine financial needs. Also in this issue are practical suggestions for navigating the mortgage process -- from before a consumer buys a home through the final loan payment -- and a look at potential risks when adding other people to a deposit or loan account. The latest issue can be read or printed online at www.fdic.gov/consumers/consumer/news/cnsum12