It is a good question and has a simple answer. Due to the major changes in lending over the past two years, it has become more difficult for consumers to refinance. In addition, factors such as credit, loss of a job and no home equity have made the problem even worse.
Right now, it’s impossible to get a mortgage if you are not working. When you apply for a loan, your bank will evaluate your credit, income and home equity. If you meet all the criteria, your employment is next. The underwriter or the decision maker will look at several things including length of time with your current employer, the gaps between jobs and whether your current job is related to your previous one. It is for these reasons that refinancing does not work or is ineffective for many homeowners as the economy has affected everybody negatively in some way. Continue reading ‘How Do I Negotiate a Mortgage Refinance When I've Lost My Job?’ »