Mortgage Refinancing Tips, Tricks and Advice

I want to pull together a range of tips and advice for home owners that want to take advantage of the low rates and refinance their mortgage. Seems like a great time to refinance with low rates, but with tighter lending standards it also seems more complex than ever. What are some tips and tricks you would give those considering this? Anyone out there that recently refinanced and can share experiences on how they locked in a great rate?

Since my expertise is valuation-related, I'll focus on that. One of the biggest mistakes homeowners make is being realistic about the value of their home. The old way was too look at a similar house in your neighborhood and assume you house was worth more. It has been widely reported in many housing markets that home prices are declining. Get realistic and understand what is happening right now. Trulia is a great place to start.

Once the lender sends the appraiser to inspect your property - this sounds pretty basic - but make sure the house "shows" well, is clean and fully accessible. Don't follow them around the house but make sure you are available for questions. Summarize the features and upgrades and the key amenities in the house for the appraiser. You want to make sure the appraiser doesn't overlook anything. It's helpful to provide a floor plan if available. Your are not trying to cause an overvaluation - rather, you want the property to be valued at full market. I am amazed at how poorly homes are readied for an appraisal.

Any relevant market activity such recent contracts or activity on nearby listings you are aware of in the neighborhood is also helpful - make sure you can provide contacts for the appraiser to confirm this information. Contracts show price levels now, closed sales show prices 45 days prior or in many cases longer and listings, combined with an understanding of how long they have been on the market, show the upper limit to value.