How To Refi Without The Glitch

Ask Kate how to refi without the glitch: Hi Kate, Buying or refinancing a home is an avalanche of paperwork that keeps people running around jumping through hoops for the month before closing.

Our homeowner continues... Constant phone calls of "ooops, we need some more info." seem to be commonplace.

Recently, we refinanced our home. We were paying off our original and taking money out as well. After jumping through all the refinancing hoops we made it to closing. All paperwork was signed, we were good to go...

Or so we thought...

The next day, the financing company called telling me our debt-to-income ratio didn't qualify. If I could prove that I had more money (in this case a 401K) everything would be fine. If not, the loan would not be funded.

So, the simple solution was to give them my 401k information. But what confuses and angers me is that WE CLOSED! To me, closing signifies the "shutting of the door" on the work. We did our bit, they did their bit. Everything should be CLOSED (hence the word). Of course, they don't see it that way.

At this point, on principle alone I might have said, "forget it." But my principles don't pay the bills. What other recourses did I have?

Kate Answers: How To Refi Without The Glitch

An avalanche of paperwork describes the home loan process well.

I worked for a forward-thinking mortgage company in the early 90s. We referred to excess paperwork as window dressing.

Yet, as I have mentioned before, we experienced a low foreclosure rate in spite of primarily funding adjustable rate mortgages, catering to the self-employed, and offering no-income-verifier programs.

But that was then and this is now.

As infuriating as it must have been to have satisfied all known requirements on your part and then have the carpet pulled out from under you at the very last second, I admire how you took care of business to get the mortgage closed.

Increase The Chance Of Refinancing Without The Glitch

Refinancing a mortgage without a glitch is every homeowner's dream. Some of this falls under the homeowner's control.

1. Submitting a full mortgage application with supporting documentation is key to mortgage success. Here is my Mortgage Information Planner to help with that.

2. Insisting on a Good Faith Estimate to understand mortgage closing costs is crucial.

3. Locking in an interest rate and reading the attached paperwork for accuracy is paramount to a successful mortgage refi. For more on locking in a rate, go to Nitty Gritty Mortgage Interest Rate Lock.

How To Cure Mortgage Approval Hiccups

But what happens when you choose a lender wisely, hold up your end of the bargain, and there's still a glitch? Go to How To Cure Mortgage Approval Hiccups for the answer.

If that fails, you can take it to the next level by contacting someone of higher authority at the mortgage company. One way to assure you connect with an actual officer is to go online to the company website and check out who's who in the hierarchy.

It goes without saying to document all conversations in writing and include names, dates, phone numbers, extensions and email addresses.

One More Way To Avoid Mortgage Refi Glitches

At first contact with mortgage lenders, let them know you expect all underwriting conditions pertaining to job history, debt-to-income ratios, assets, credit history, and property appraisal cleared before signing final loan documents.

You might also reserve the option of taking your loan documents to a trusted adviser for review. But please keep this in mind when you lock in your interest rate. You should plan for enough time which could end up costing more.

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Best wishes,

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