5 Expert Tips About Home Buying and Refinancing

Story By Class Act Federal Credit Union

From Yvonne Overstreet, Mortgage Lending Manager at Class Act Federal Credit Union

You can refinance your home to pay for other expenses and save on interest.

Refinancing your mortgage and “cashing out” is a creative way you can use home equity to finance things such as home improvement, debt consolidation, vacations, weddings, or excessive medical bills. Keep in mind there is a cost associated with refinancing a home, therefore, not always beneficial.  Class Act will complete a tangible benefit evaluation. This is why our mortgage professionals at Class Act prefer to sit down with members to discuss the costs vs. benefits of refinancing to determine the most financially intelligent way to move forwards

Be careful dealing with people who reach out to you about refinancing your home.

For-Profit financial institutions make money every time you refinance your home with them. Because of this, it’s important to sit down with a loan originator before making a decision. It allows you to review all of the information they provide and make sure they’re not trying to take advantage of you. If they can’t answer all of your questions or pressure you into making a decision, steer clear.

Don’t be discouraged if your credit scores are low.

People with low credit scores shouldn’t dismiss the idea of purchasing a home. While most financial institutions immediately turn people with bad credit away, Class Act educates you on how you can improve your credit by conducting a credit analysis in which we will identify opportunities to increase your score to the minimum requirement. After the member has completed the suggested action items, they are encouraged to return to have a reassessment of their credit report.

Take advantage of the benefits Class Act offers.

Class Act’s rates and fees are extremely competitive. This is because Class Act is not-for-profit and profits are poured back into the credit union to benefit members. Class Act also focuses on giving every member individual attention. Members can text, email, call, or meet face-to-face to discuss all their needs. Class Act also holds and services many of the home loans. In doing so, those members don’t have to worry about their mortgages being sold on the secondary market after closing.

Don’t let intimidation hold you back.

If you’re not experienced with purchasing or refinancing a home, don’t let it hold you back from trying!  As an education-focused credit union, Class Act understands that many people don’t know the ins and outs of the home buying and refinancing process. A Class Act mortgage professional will thoroughly explain the process of purchasing a property, how to improve credit scores, and when and if it is beneficial to refinance your home. Many people don’t realize that there are several programs and ways to get around obstacles that may prevent them from purchasing or refinancing a home.

Visit classact.org or call 502-964-7575 to see how you can become a member today!