By S. Smith -Â http://www.mortgagefit.com/refinance.html
Have you inherited a house from your grand parents? I’m sure there are many people who have inherited property from their family members or from their close relatives. Sometimes this property is shared among the siblings or an individual is the sole owner of the property. There are many people who want to refinance their inherited property but they are not sure whether they can do it. You can apply for a loan on the inherited property but here a few things that you should know.
1. If the property is shared by many people then you can discuss with them the intension behind refinancing the property. Once you present your views before them then they can decide what they want to do. Remember that if you inherit a property that is shared by your siblings then they have equal right on it. Unless they give consent you might not be able to refinance your property without mortgage. Therefore, you can get cash out refinance to buy out the interest of the other sibling if any one of the siblings wishes to stay in that house.
2. Make sure that you determine the amount you want to take out on the house. If you take out loan to pay off your siblings then ensure that you prepare a written document before you plan to apply for a refinance loan. It will be beneficial for you if you are aware of the terms on the loan along with the amount in order to get an appropriate mortgage for your house.
3. You can approach your mortgage lender and ask him whether you can pull out cash by refinancing your inherited house. You can get loan from the mortgage lenders if your house does not currently have a lien as a cash-out refinance. But there are a few lenders who make exception rules for refinancing inherited property. Shop for mortgage lenders who offers loan at affordable interest rate as cash out refinances are offered on high interest rate.
4. Make sure you apply for a mortgage loan from a lender who offers loan at affordable interest rate. Try to maintain a record of the documents required for getting a loan inclusive of the proof that you inherit the property. Before you are allowed to close a mortgage the lender will submit the document to the company for approval.