There are many advantages to refinancing your mortgage. When you refinance your mortgage you can lower your interest rate, lower your monthly payment amount, and even cash out equity in your home, provided the lender approves your application. If your credit score is too low or your debts too high, mortgage lenders could decide you are too much of a risk for lending. Here is what you need to make sure your mortgage refinancing application is approved.

The process of refinancing your home will go more smoothly if you take to time to do your homework and prepare your finances prior to applying. Before you start applying for a new mortgage, take the time to review your credit and your income.

Review Your Credit

Prior to applying to refinance your mortgage you need to request copies of your credit reports from the three credit agencies and review them for errors. If you find errors in your credit reports you need to dispute them with the individual credit agency and your creditor that made the error. Your credit score is based on the contents of your credit records; it is important that these records are accurate prior to applying to refinance your mortgage. The interest rate you will receive on your new mortgage is directly related to your credit score.

Document Your Income

Applying to refinance your mortgage is no different than applying for your original mortgage. Your lender is going to want proof of your income and assets. You can document your income with pay stubs, bank statements, and tax returns. You will want to provide documentation of your income going back two years. There are loans for homeowners that have problems documenting income; however, these