Advantage of Refinancing a Mortgage with the Same Lender
There are several benefits to refinancing your mortgage, including obtaining a lower interest rate and cheaper monthly payments, which will provide you with additional cash flow to help pay off any debts and enjoy your life a little more.
Refinancing is essentially creating an entirely new mortgage, which means there is no obligation to refinance with your existing lender. If you enjoyed your current mortgage experience with your present lender, then it’s natural that you will want to continue doing business with them and there’s no need to look elsewhere. Many people wonder if there are advantages in using the same lender for their new mortgage and it is a common assumption that choosing to stay with the same lender will come with rewards; however, loyalty may not mean anything for this particular process as there are strict guidelines for qualifying for a mortgage and lenders will not take any chances. You will still be required to go through every step of the process and will have to show all of the necessary documentation and shortcuts do not exist.
Every application will be carefully scrutinized to make sure applicants are capable of handling their monthly payments and even if you are an existing customer, you will have to go through the full application process to see if you qualify for an approval. This is the case for every applicant, regardless of whether you’re working with the same bank or a new one and you will have to complete all of the paperwork and submit the most recent paycheck stubs, tax returns, bank account statements and any other documents that may be requested. Just because you already have a mortgage or an excellent credit score or even a perfect payment history, does not mean you will automatically get a faster approval. Remember that you’re applying for a new mortgage, so lenders will need as much information as possible to determine whether or not you are eligible.
If you’re considering a second mortgage, Collin Bruce can help. We are located in Edmonton and our office can help with all of your mortgage needs, so whether you’re a first-time homebuyer or wish to refinance your current mortgage, we can help, so contact Collin Bruce today!