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.

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: Top Recommended Mtg Lenders
For People With Credit Problems
-Updated 2008-: