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Thinking about refinancing...am I even qualified?

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(@fitness855)
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Been going over my mortgage lately and thought refinancing might save me some cash, but honestly, I'm not sure if I'd even qualify. My credit's decent, but I switched jobs about 6 months ago, and I've heard that can be a red flag for lenders. Plus, my home's value has gone up a bit, but not massively. Wondering if anyone here has been in a similar boat—did changing jobs or modest home equity affect your chances much?

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(@cooking724)
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I get why you're concerned about the job switch, but honestly, I wouldn't stress too much about it. I refinanced about a year ago, and at the time, I'd only been at my new job for around four months. Like you, I had decent credit—not perfect, but solid enough. The lender did ask about the job change, but mainly they just wanted reassurance that my income was stable and in the same field. As long as you didn't make a drastic career shift or take a big pay cut, it might not be as big a deal as you think.

Also, you mentioned your home's equity hasn't skyrocketed, but even modest gains can sometimes make refinancing worthwhile. When I refinanced, my home's value had only gone up slightly, but it was enough to improve my loan-to-value ratio just a bit. That small improvement actually helped me qualify for a slightly better rate.

One thing I'd suggest is looking beyond just the traditional banks. Credit unions and smaller lenders can sometimes be more flexible about things like recent job changes or modest equity gains. When I first started looking, I assumed big banks would have the best deals, but surprisingly, a local credit union ended up offering me better terms and was more understanding about my job situation.

Of course, everyone's situation is different, and lenders can be unpredictable. But from my experience, the job change wasn't as big of a hurdle as I initially worried it would be. If you're upfront about your situation and your income is steady, there's a good chance you'll find a lender willing to work with you.

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brian_anderson
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(@brian_anderson)
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That's interesting about credit unions—I hadn't considered them. Did you find their appraisal process any different from the bigger banks, or was it pretty much the same experience? Curious if that's another area where smaller lenders might be more flexible...

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milo_walker
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(@milo_walker)
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When we refinanced last year, the credit union's appraisal definitely felt a bit more personal and flexible compared to our experience with one of the big banks. It seemed like they took more time to understand the unique aspects of our home—especially since we'd done some eco-friendly upgrades like solar panels and energy-efficient insulation. Bigger banks sometimes just tick boxes, but smaller lenders might actually factor in things that add real value, even if they're not standard features.

Speaking of which, have you made any energy-efficient or green improvements to your property? If you have—or even if you're just considering it—it might be worth asking potential lenders how they'd factor those into an appraisal. Could end up helping your valuation quite a bit...

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Topic starter
(@fitness855)
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Credit unions can definitely be more flexible, especially if your situation isn't textbook perfect. When I refinanced a couple years back, I'd recently switched jobs too—about 4 months prior. The lender asked for a letter from my new employer confirming my salary and job stability. Wasn't a huge hassle, just an extra step. If your home's value has increased even modestly, that should help offset any concerns about the job change. Worth checking out smaller lenders first, IMO.

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