In this tight lending environment, good credit is golden. You'll need good credit to refinance with the best interest rate.
Don't forget to pay your credit card bill in the months prior to applying for a mortgage refinance. If a creditor reports to the credit bureaus you were 30 days late on a payment, this may hurt your rate or even your ability to get a loan these days.
"The lender is going to pull your credit when you apply and prior to closing," says Rob Nunziata of FBC Mortgage in Orlando, Fla.
And before you apply for a mortgage, check your credit history to make sure there are no errors or any credit issues you need to resolve. After you submit your application and begin the loan process, don't make any moves that could impact your credit scores such as opening new credit lines.
--Polyana Da Costa