Before you start shopping around for refinance rates, you should know that your first call should be to your existing lender. If you have a good credit score, a low level of debt, and a steady job, you may be an excellent candidate for a new mortgage. Furthermore, if you get a new home loan with a significantly reduced interest rate, you could reduce your monthly payments significantly. But why should you stick to your existing lender instead of going to others? Here are some of the top reasons:
Reduced paperwork
Applying for a new home loan from your current lender will mean you will have to provide less paperwork. The main reason for this is that you already have a relationship with them. Because the lender already knows the critical aspects of your loan profile, you will be asked to provide less documentation. This will save you time and effort.
Access To The Same Lender
Your existing lender probably has a strong reputation. After all, they have provided excellent service to their customers for years. This is a huge advantage. It means you are more likely to get better terms if you stick to the same lender. Also, you will be able to count on the same quality of service. The lender will be able to provide the same excellent service for your new mortgage as they did for your original loan.
Better Rates
Because the lender knows more about your profile, they are more likely to give you a better rate than a different lender. If a lender has a history of providing better service to its customers, it will be more likely to offer a competitive interest rate. You should be able to negotiate a better interest rate by sticking with your current lender.
Better Loan
You will be able to take advantage of any special programs your lender has. For example, they might be offering a certain amount of interest rate discounts to regular customers. By refinancing with your existing lender, you will find out if you are eligible for these special offers.
Easier Closing
If you refinance with your existing lender, it is easier to get your mortgage approved. The lender already knows your financial situation, and you will have an easier time getting your new home loan approved. Because you are only dealing with your existing lender, you might not have to pay any closing costs. If you choose to go to another lender, you could have to spend several thousand dollars in closing costs.
No Red Tape
By refinancing with your existing lender, you avoid dealing with the red tape that is sometimes involved in getting a new home loan. The lender knows you and will get your new home loan approved more quickly.
Your Refinance Leader in Michigan and Beyond!
Refinancing a home loan with your existing lender can be an excellent way to save money. While you should always get the best interest rate possible, you should remember that safety is the main priority. You don’t want to switch lenders every six months because you have found another lender offering a slightly better interest rate. By sticking with your current lender, you should be able to get a better interest rate and a more secure loan package.
Refinancing your home loan with your existing lender will involve a number of benefits, as discussed above. Of course, you’ll get to enjoy these if you are already with one of the best mortgage lenders in your area. Mortgage City is among the most trusted mortgage lenders in Michigan that can offer you the best refinance deals. We also serve the states of Florida, New Hampshire, Ohio, and California. Contact us at (248) 930-8709 to know more about our services!
