Have you been thinking about applying for a home mortgage refinance loan?

Perhaps you are in an adjustable rate mortgage, looking to consolidate debt, or even just lower your rate to a lower, fixed monthly payment. No matter what goal you are seeking to obtain at closing, one thing that you should stay focused on is how to save time and money when applying for a refinance of your home. However, all too often, many home owners make the common mistake of not being fully prepared.

Being prepared, what does that mean?

When applying for a refinance loan, you will want to be able to lock in your interest rate as quickly as possible when you see a low rate you want. Unfortunately, many homeowners lack the organization of the required documents and end up fumbling for them when they see a low rate, only to miss their chance to lock it in before the market changes, and even delay the closing of their loan which costs even more time, money, and heartache. Here’s how to avoid losing your precious time and money:

Gather Your Employment and Income Information

Always have one month of your pay stubs and spouse on hand, and if you are self-employed you will need to have your tax returns for the past two years. You should also have your W-2′s from your employers for the past two years also. If you haven’t been working at the same place of employment for at least two years consistently, have your work history and employer contact information along with payment history available as well. This will allow you and the lender to quickly and accurately calculate a monthly average of income.

Obtain Most Recent Bank Statements and Other Asset Statements

Typically most homeowners will only need to show two months worth of statements from your bank accounts, IRA’s, 401k, and any other investment accounts when applying for your home mortgage refinance. Documenting assets is a vital part of loan application which can also position you to get the lowest rate possible. Your lender will typically ask for the last 3 months of these statements to evaluate.

Get Your Homeowner Documents Organized

In many cases your lender will ask for the title insurance and home owner’s insurance policy and may even inquire about the property taxes you pay on the home. In some instances they may also ask for to see the note to your home if you have an adjustable rate mortgage or prepayment clause. Also be prepared to show the lender the most recent appraisal and survey of your home in case they ask. One other important document to have on hand is also the most recent mortgage statement that shows the balance and monthly payments of any and all loans on your home.

You’ve got everything Together, Now What?

Good! Now that you’ve got all the necessary paperwork together, you’re going to find that when you’re applying for your home mortgage refinance, you’re going to feel very confident and in control. You’ll notice that nearly every possible question on the loan application will be easily answered because you are prepared with the necessary information and you’re lender will be happy too! So get started and apply for your loan today knowing that you just saved yourself a great deal of headache, time, and especially money by simply getting organized!

An author on refinancing. For additional articles and an extensive resource for everything about mortgage refinance rates and bad credit mortgage refinance . Please visit us for more info.
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A 401K transfer can be done under a limited number of circumstances, but there are a lot of rules that need to be considered to keep your savings safe.

You’re only offered the opportunity to move your account immediately after you leave a job, often within 30 days, or when you turn 59 years and 6 months old, or when you retire.

When you leave your job you have four options about what to do with your account. You can leave the money in your former employers plan, you can roll it into a plan with your new employer, or roll it into an IRA (independent retirement account), or you can cash out.

When you do a 401K transfer to a new employer you need to be very careful about how you fill out the paperwork. You are responsible for this paperwork, and if filled out incorrectly it can be seen as cashing out by the IRS, and then you have to pay penalties I’ll describe later. When you fill out a 401K election form you want to be clear about wanting a trustee to trustee transfer. What this means is that you want the funds to go directly to the new account, not come in a check to you. Even if you take this check and put the money into the account yourself, you risk this being seen as a cash out by the government. Also, if a check comes to you, your former employer is required by law to hold 20% of the account to pay the taxes on the account. You will have many problems if this happens, so make sure that it is clear you want the funds directly transferred.

When you decide to do a 401K transfer to an IRA instead you still want to make sure the funds go directly to the IRA instead of to you. The only real difference here is that you are more in charge of the account, and need to find a company to open an IRA at yourself. You’ll want to make sure that you are doing a rollover to a traditional IRA instead of a roth because traditional accounts take pretax funds, like the money from your 401K, where as roth accounts are after tax.

When you choose to cash out an account early you are charged a heavy penalty. If you cash out instead of doing a 401K transfer you are charged federal and state taxes on the amount taken out of the account, plus a ten percent early withdrawal fee. The federal tax percentage is determined by your tax bracket, which you can estimate based on your tax papers from last year, and state taxes are determined by the state you are filing in. The total penalty is therefore different for everyone, but the percentage could easily be 30% to 40%, plus the money the account would have accumulated for you up until you reached retirement age. That’s a lot of money to miss out on, so people generally don’t do this unless they feel they have no other choice. This is why it’s so important you are clear about your wishes on your 401K transfer papers.

Retirement accounts don’t have to be so confusing. At my site I try to simplify how to do everything you need to, like cashing out a 401k account, and other 401k or IRA options people need information about.

Article Source:http://www.articlesbase.com/mortgage-articles/401k-transfer-1433252.html

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Please Note... All links within articles are placed by their author-owners and not by this blog.Products with in those links may or may not be the best in the world.If it sounds too good to be true it could be a scam.Articles are posted for their info,ideas and or entertainment value only.

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