What you need to consider is how much you are saving by paying off your credit card debit. If you are saving money each month, than it is to your advantace to refinance. You can clain the mortgage interest you pay going long form at tax time.
Talk with a bank/broker, a bank/broker underwrites for the bank side, and if they can’t do it, than the loan is submitted to a outside lender. For instance, I look at rates, and choose the best rate possible for my clients, before locking in the rate. (I have 100 outside companies that I can submit to) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking to purchase a home &/or refinancing, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.
Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only - not the final - but it does help you figure things out. With the many changes with lenders today, companies will want you to escrow you taxes and insurance if the LTV (loan -to -value) is over 80 percent of the appraised value.. FHA requires it. Conforming side, will charge a .25 to the interest rate if you want a escrow waver... Good Luck.
Wanda Ellis, Eagle Nationwide Mortgage Company
a Subsidiary of Eagle National Bank
Mortgage Professional for 8 years