Knowing how much financing you can get focuses your search.
Helpful: Talk with at least three lenders. Have one run your credit reports so you can correct errors. Ask the lender how it views negative items in your record-and prepare explanations. If you qualify, lenders issue a "handholding letter" stating the maximum loan amount.
Strategy. If you plan to spend less than the amount for which you qualify, have the letter state the lower amount-so sellers don't know you could spend more. Having a hand-holding letter makes you more attractive to a seller who has comparable bids from different buyers. If you are considering refinancing, then do it for whatever reasons that are good for you. If you can obtain a significantly lower interest rate or a lower monthly house payment, then it make sense to refinance. It's not vice to refinance to get the equity and use it for a trip to Las Vegas and place the money you have left on casinos.
If you already have made the decision of refinance, then make sure it is for a legitimate reason otherwise you spend valuable time and money refinancing one of the most secure investments you have for your future. Why would you want to do that anyway?
Like I said above, the only time refinancing should have any appeal to you is when it is going to save you money on house payments each month and when it is smart business to refinance your home mortgage for future benefit. Then, you still need to reflect on the fees involved in order to refinance. Remember, the banks want to make money off of you every time they see you in front of one of their loan officers, so carefully investigate what those fees are before you commit to a refinance.
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