Bad Credit Mortgage Refinance

Refinancing your mortgage with bad credit can be an intimidating task. There are steps you can take to improve your options before you start applying for a mortgage. Here are three easy tips to help you get started.

If you dont have a savings account, open one. Start squirreling money away in your savings. Cash in the bank will improve your application; also, the lender may require you to prepay points in order to qualify. The more cash you have on hand the better. One easy way to put some cash in the bank is to go through your attic or garage and sell some things on eBay. The more cash you have on hand when you apply for the new mortgage the better.

Cleaning up your credit is easier than you think. The most important thing you need to do before anything else is make sure your credit reports are accurate. If there are errors in your credit report it will cost you money.

Make sure you pay your bills on time. Make the payments on your current mortgage and your credit cards on time. Your new mortgage lender will need to see that you have at least six months of on time payments on your record. Pay down the balances on your credit cards; better yet, pay them off and close the accounts. The less debt you have and the more money you have in the bank, the better.

Refinancing your mortgage is simply taking out a new mortgage to pay off the old mortgage. Your poor credit rating will make refinancing difficult and you need to be flexible in the terms and conditions you are willing to accept.

Doing your homework will save you money on the new mortgage. Online mortgage companies make it easy to shop for loan offers. Brokers can help you find lenders that specialize in bad credit mortgage loans. To avoid making mistakes while shopping for you new mortgage, sign up for a free mortgage guidebook online.

Louie Latour has twenty years of experience in the mortgage industry as a mortgage broker. He is the owner of Mortgages Refinance Advisor, a mortgage help site devoted to saving homeowners money with a free guidebook Mortgage Refinance: What You Need to Know.

See Also:

Types of Loans
Loan Types What types of loans are available to me? There are many different types of mortgage offered to consumers. Some of the most popular mortgage broker are the FHA Home Loan (Federal Housing Administration) and the VA Loan . Because the FHA mortgage and VA mortgage are guaranteed by the ... more...

Online Mortgage in UK - Introducing the Best Mortgage Plan Across UK
Add the term online and it will open for you an exhaustive assortment of opportunities. Add online to mortgage and it will have the same effect. So many people want to get mortgage programme and get with it fast. The online mortgage in UK indisputably takes lesser time and simplifies the entire ... more...

Lowest Mortgage Rates UK Lowering the Cost of Mortgage
Mortgage is the most widespread industry that offered to loan borrowers with real estate as collateral. Mortgage has so many innovations and opportunities that a loan borrower can exploit them for their own benefit. You must have heard and read it elsewhere that mortgage rates are at an all time ... more...

Mortgage Glossary - A Glossary of Mortgage Terms You Should Know
Acceleration Clause A clause in a mortgage defining that the entire outstanding balance can become due and payable should mortgage default occur. If the entire balance is not paid, the property will be foreclosed.Adjustable Rate Mortgage (ARM) Mortgage with interest rates that may be adjusted by ... more...