Mortgage interest rates are at historically low levels and with homeowners at risk from job losses, the hosing market crash and the ever-present threat of foreclosure the government is intent on enabling homeowners with high interest rates or adjustable mortgages which are coming close to their term to refinance.

Qualifying for a mortgage is not what it used to be however. Not long ago to qualify for a mortgage you needed a decent credit score and a pulse. Today the mortgage application process is a little more difficult.

The willingness of lenders to approve any mortgage/refinance application during the recent housing market boom is the main cause of not only today’s housing but also the prime force behind the economic collapse on Wall Street. The lending institutions have been badly burned and consequently the mortgage application process has been drastically altered.

Before you consider a loan application review your credit report. A low credit score could mean that you will not qualify for a mortgage refinance and even if you do the rates might make it not worth your while. If your score is low look at your report and see if there are problem items that you can address like errors and high credit card balances.

The second thing to look at is your homes value. Has it decreased in the current market? If the appraised value of your home is less than you currently owe then you are in negative equity and no lender will make a loan to you unless you can come up with the funds required to pay down the loan to a lever that the bank finds acceptable.

Also consider the term remaining on your current loan. Will refinancing to a lower rate with the points and closing costs accrued actually save you any money?

Also how long are you considering staying in your current home? If you plan on moving in the next five years is it worth pursuing a 30 year fixed rate.

If you do decide to refinance the make sure that you have all the documents that you will need for the mortgage rep to submit a complete application. Nothing attracts attention like an incomplete package sitting on an underwriter’s desk waiting on paperwork.

To recap before you set off on the road to refinancing your mortgage:

Review your credit report.

Look at your homes current value in relation to your current mortgage load.

Review your lifestyle goals over the next five years.

And gather up all paperwork that may be required.