What determines if I can refinance?

2 Replies

Trying to get a HML to fix and then refinance and then move in. What determines if we can refinance the property besides our income/tax information and the appraisal value?

Note- Property is unique due to large size in lower income area of nice town. Great school systems, low crime. Property has 1 2000ft house, 1 600ft mother in law suite, 1 1000 ft house, 2 acres- 3 separate buildings on one property. All brick, new roofs. Dont want to run into purchasing with hard money and not being able to refinance due to bank not being able to find comps to affix value. I figure the appraisal will help with this before we purchase it.

Note- I am a business owner, and have been getting my income for two years inline so I can get mortgage in early 2018. My mortgage guy says I am on track to be approved. My partner is starting a job in 2 weeks bringing in 5k before taxes. No other substatial debt. Thanks!

Your mortgage guy says you are on track. Are you concerned that isn't so? Has he looked at the property and said "Even if you fix that up, we can't finance it?" 
Maybe talking to more than one lender would help you feel more secure in your decision.

What determines if you can refinance?

1. The amount of equity in the home.

2. Your income.

3. Your credit.

4. The lending institution's standards.

That pretty much covers it. Sometimes you can refinance out of something without any equity if you bring some cash to the table, but this usually doesn't make any sense unless you're swapping way down on an interest rate (which you might be going from a HML to traditional financing), or the bank is willing to do it with you eating mortgage insurance.

Your partner's income will probably largely be ignored unless s/he had a similar income before this job.