Refinancing underwriting requirements

[inthewoods]

Are refinancing underwriting requirements about the same as initial mortgage requirements? Will the fact that I have opened three cards in the last couple of months complicate / prevent refinancing? Credit is spotless and around 800 even with the recent new accounts and inquiries. Considering refinancing from a three year old 7/1 ARM @ 2.75% in July (~$550k, 50% LTV), provided rates remain decently favorable. Probably going to do a 5/1 or 7/1 again, since I expect to be able to pay off the mortgage in the next 4 years, if rates increase.

[frugalQ]

you will still have to meet DTI and credit score requirements.  if the minimum payments on the new cards keeps you within DTI limits, you are probably ok.

question: if you are planning to pay off in 4 years, why refinance?  you will still be within your the 7 years of your existing ARM.

[DallasLoanGuy]

dont sweat the new accounts.

with high credit and low ltv this will fly thru automated underwriting.

yes, we check all the same stuff just like a purchase..... income, assets, taxes, ect

but when you pass the automated underwriting, it basically has already given it's blessing on the recent credit accounts. 

[inthewoods]

Of course I need to meet the DTI and score reqs, but last time they had other non-negotiable requirements, such as “no large unexplained incoming cash wires recently” and “at least one seasoned credit card line”. I get these vary from bank to bank, but I was wondering if refinancing was somehow less strict.

I want to have the _option_ of paying it off in 4 years, but if I can still carry hundreds of thousands of leverage @ 2.75% I would probably keep doing that for a while. If I don’t refinance now while the rates are low, the rate is very likely to go up substantially in 4 years, which would _force_ me to pay it off even if I had higher uses for that capital.

[inthewoods]

Thanks! Yeah, I figure it will be much easier this time around, because everything about my profile is much more mature (income, credit cards, mortgage experience, etc). And the house is already mine, so less escrow etc issues.

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@DallasLoanGuy wrote:

dont sweat the new accounts.

with high credit and low ltv this will fly thru automated underwriting.

yes, we check all the same stuff just like a purchase..... income, assets, taxes, ect

but when you pass the automated underwriting, it basically has already given it's blessing on the recent credit accounts. 

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We’ll see if I pull the trigger in a couple of months.