If you intend to do home refinance, then you will enjoy re-fixed home price at a lower scale. Not only that, in the case of another home refinance, you will receive additional funds from new loans. In this case, the bank will provide new higher loans than your previous loan limit, provided by the value of your collateral support.
For home refinance, your guarantee will be calculated by the new bank. The values of your property each year will tend to rise, so the ratings will be higher, then you get the ceiling which is also higher.
However, before the bank approves the increase in the ceiling, it will usually be ascertained beforehand how much your financial ability to pay the mortgage.
Doing Home Refinance
For the bank, home refinance also provides benefits moreover if the debtor has a good track record in terms of loan repayment. A good track record can be used as evidence that the debtor has the character and ability to repay the loan. Therefore, that is why many banks are pushing for home refinance. Besides the lure of obtaining a higher ceiling, usually the bank offers relatively cheap interest, especially for a home loan refinance when compared to the loan application for the purchase of existing homes. Indeed, this sounds quite interesting, but do not be lulled by these lure. There are some things that should be your concern to process the costs for home loans.
Before implementing the process of home refinance, typically the Bank analyzes the credit and also performs recalculation (re-appraisal) of your collateral. For this purpose, you need to prepare several documents such as identity and proof of your latest income to be used as a condition for obtaining loans. Although it is home refinance, the process is almost the same with the new loan. However, usually the process will be faster because the bank has a track record on your home mortgage payments. The banks will usually rely on historical data on payments for home refinance assessment on the application.
For that reason, before deciding to do home refinance, make sure the performance of your mortgage payment. If you are often late, up to more than 60 days, it’s good if you rethink on the transfer submission of your loan. Usually the Bank will provide rejection if the performance on your previous payments commencing bad. Not only that, because there is the process of reassessment of the collateral, in this case the bank does not just want to know what the current warranty, but it is also done to check back related documents, especially with regard to the validity of the building permit. Usually what often happens is that building permit is different from building conditions. For example, the building permit states one floor, but the real building now has two floors. By these differences, it needs further discussion relating to approval loan.
One question that often arises about home refinance is how to guarantee the document. This is due to outstanding loans, certificates will be held by the old bank. As for the process of checking the new bank, it would require the document. Usually the new bank, in this case the notary, will check the validity of documents through a copy of the certificate. Although only a copy of the certificate, the bank takes bold decisions because previous bank would have to check before the credit application is approved. The end of process is the most complex thing. It is related to the settlement and delivery on certificates and other documents. Moreover, the certificate cannot be taken if the debtor does not repay the loan applying to any bank. If you’ve paid off, the old bank will submit the certificate to the debtor and not directly addressed to your new bank.
If the credit is disbursed but the new bank has not received a certificate of land and buildings as collateral, this will usually cause problems because there will definitely be a pause liquid credit until the certificate is accepted. However, usually if a home refinance filing has been approved, the new bank will pay off the loan amount to the old bank. After that the debtor together with the notary of the new bank will take the title documents to be processed at the notary’s office. The problem is related to the process for issuing certificates document that takes a long time. As a result, the new bank is usually reluctant to implement over the home loan process. By this issue, you as a debtor, make sure how much time it takes for the old bank to issue the certificate after the settlement. If there is no answer, then you can consult with the new bank. Do not wait until the time of delivery of certificates submitted from the old bank.
From this process, actually a home refinance is not simple, because there are many things that need to be your attention. There are three parties involved. They are you as a debtor, the old bank, and also the new bank. The home refinance process is usually more complicated than the usual lending process.