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How To Find a Good Lender When Refinancing With Bad Credit
If you are trying to refinance your home loan and you have bad
credit, beware of subprime lenders who would take advantage of
borrowers with poor credit. Here are some tips to
finding a good lender online. These are the Best of the Best:
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When applying for a bad credit mortgage loan, make sure you are current on your existing credit lines. You will want your current credit to be as good as possible.
Also, make sure to include all the income you have. If you have any equity in any stocks or other financial accounts, make sure to mention that to the broker as well.
The more money you can put down on the loan, the more likely it is that you can get approved. FHA loans usually only require 3-5% down. They are also usually open to working with people with credit problems.
Analyze your own credit report
You can obtain a copy of your own credit report for free
here: free credit report.
View it and make sure it is reporting accurately. If you
do see any mistakes on it, report them to the credit reporting
agency to be resolved.
Know what
your credit score is. The lower the score the higher the
interest rate
you will get with your loan, but at least you will have an idea
of what to expect from a lender and you will know how much
you are going to need as a down payment. Paying three to five additional
points on the loan is common for people with bad credit history.
Apply With Many Different Lenders Many websites
online will accept your application and submit it to over 100
different lenders and provide you with the top 4 offers.
This is a great way to compare offers and get a competitive
interest rate.
Once you receive offers, compare
the rates and fees. Often the fees are where lenders make
their money. Adding up the interest and fees, and comparing
that figure will give you the true cost of the loan.
Beware of Shady Lenders Subprime lenders make
their money by pushing loans with high interest rates
and points. Some lenders will push these types of loans
even if they aren't best for you, so beware of fast-talking
brokers. Be sure to read the terms and look for hidden
fees before you sign the paperwork.
Here are our recommended sources for bad credit mortgage refinance lenders online:
See below for the Most Reputable Lenders:
-(updated )-
When applying for a bad credit mortgage loan, make sure you are current on your existing credit lines. You will want your current credit to be as good as possible.
Also, make sure to include all the income you have. If you have any equity in any stocks or other financial accounts, make sure to mention that to the broker as well.
The more money you can put down on the loan, the more likely it is that you can get approved. FHA loans usually only require 3-5% down. They are also usually open to working with people with credit problems.
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