Refinance Quote

A refinance quote is an estimate given by a representative of a lending institution to lend money for a specific interest rate to an individual based on a credit score and an income to debt ratio evaluation. These estimates that are advertised are usually the best rates available for those with AAA credit scores and low debt to income ratios. Interest rates on any loan are determined by the credit score. The credit score is determined by the amount of debt a consumer has compared with the amount of income and credit they have available to them.

A consumer can contact a number of lending institutions to get a refinance quote, however these estimates will not be accurate unless the consumer provides the loan officer with a valid credit score (valid pertains to being less than 30 days old). Honesty really counts here. "Mercy and truth are met together; righteousness and peace have kissed each other" (Psalm 85:10). It is to the consumer's benefit of gaining accurate information to give the loan officer the correct score. Refinance quotes are estimates. The actual rate received will be located on the final paperwork at the end of the loan process. Estimates may change during the process of a loan due to changes in the credit report score, if the loan process lasts longer than 30 days from the date of credit reports retrieval.

Loan shoppers can be given estimates online, over the telephone, or in person at a local lenders office. Once a refinance quote has been given, documentation will need to be made available to the loan officer including income pay stubs, photo identification, proof of title to real property, and proof of insurance. Current loan arrangements must also be reviewed. Once these items are verified by a loan officer and refinance quotes are authorized, the loan process can begin. Some lenders can get a loan processed in as little as 3 days; however, the average time table for loan approval can be from 30-45 days. It is important to continue to make original loan payments until the payment voucher book for the refinance loan arrives.

Mortgage lending institutions or brokerages really benefit from refinance quotes. A mortgage brokerage acts as a third party intermediary to connect the consumer with the ability to search through the options of combined institutions to find the right refinance quote for a loan for each individual. The consumer is advised to check the local BBB or Better Business Bureau for ratings of prospective lending institutions. The BBB provides the public with accessible information regarding businesses. A consumer can review lists of complaints or compliments written by previous customers. Experts suggest reviewing the ratings of a lender before signing any papers.

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