Scottsdale, Arizona (PRWEB) April 29, 2013
Neil Gitnick, celebrated veteran of the home finance industry, is no stranger to the complicated system of refinancing. And with mortgage rates near record lows, many homeowners who bought houses when rates were higher are on the lookout for opportunities to get better deals. The act of refinancing can make a lot of sense to many families, says Neil Gitnick, but just because rates are lower doesn’t necessarily equate to a better deal for the owner. There are a few factors that must be considered before one even contacts a bank or obtains a quote.
Neil Gitnick says the first step is figuring out how much equity one has in his or her home. This is of utmost importance because in a traditional refinance, a lender will want the LTV (loan to value) ratio to be no more than 80 percent. With the decline in the average home value over recent years, it has unfortunately become increasingly tough to qualify for a traditional refinance this nature.
All hope isn’t lost, however, if one’s equity is a little less than ideal. Another potential option presented by Neil Gitnick is to explore HARP – also known as the Home Affordable Refinance Program. HARP was created to aid homeowners who may be struggling with the tanking real estate market and wouldn’t otherwise qualify for refinancing into a lower interest rate loan. HARP can seem like a godsend, but unfortunately not all banks recognize or participate in HARP, and sometimes, depending on individual circumstances, some home mortgages won’t even qualify for it. Neil Gitnick recommends that individuals looking to refinance look into HARP directly, see if they’re eligible, then move forward from there.
Neil Gitnick also recommends that those looking to refinance have all the appropriate homework done before they approach a lender directly. “You’ll need recent pay stubs and bank statements, two years of tax returns, and proof of homeowners insurance just to get started,” explains Neil Gitnick. “Getting everything categorized and indexed helps to streamline the whole process and also paints you as a prepared, responsible person to the bank.”
Neil Gitnick also recommends making plenty of copies of everything and keeping all documents straightforward and organized. “The entire process can take upwards of a month, and you want to make sure that everything on your end is faxed, provided and pushed through to the appropriate agencies as quickly as possible,” Neil Gitnick explains. “Don’t let yourself be the bottleneck.”
Neil Gitnick of Opportunity Lending has more than two decades of operational experience in professional finance and 19 total years in executive leadership. Neil Gitnick has also founded a successful host of successful real estate companies, such as a real estate development organization specializing in land rezoning and entitlements as well as a wholesale mortgage brokerage specializing in consumer loans.