There are a lot of good reasons to think about refinancing your mortgage, and the first that usually comes to mind is a lower interest rate.
But even if you're trying to switch to a different type of loan, consolidate your debt, or use some of your home equity to pay for a new car or college tuition, it's time to sit down and take stock of your current financial situation.
Without a doubt, the first thing you'll need to do is to find out your credit score.
Knowing this will enable you to best judge what you can and can't do, and what your next step will be.
Unfortunately, if you're financial situation has worsened since you last refinanced or took on a mortgage to begin with, there is little you will be able to do when it comes to refinancing.
The same thinking applies if your situation is relatively the same as it was before.
Interest rates are not likely to go any lower for either of these two outcomes.
Remember, if you can't get it to go down at least two percent, it's generally not worth the trouble of applying.
Having a low credit score isn't the end of the world though.
You may not be able to qualify for the loan you want today, but now you've got a solid understanding of where you stand, and can take the necessary steps towards improving your score.
Let's suppose for a moment that your financial situation has improved, and your credit score is higher.
Chances are pretty good that you'll be able to refinance your loan for a lower rate, or consolidate the debt you've been eyeing.
Whatever the outcome, it all begins with your credit score.