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Refinance Your Mortgage to Rebuild Credit
Refinancing your mortgage
is one way to rebuild your credit, particularly if you
have recently declared bankruptcy. With a poor credit history,
you can find refinancing through a sub prime lender. To
rebuild your credit, make regular payments on your mortgage
and other bills. Then after two years, refinance again
for lower rates with your now good credit rating.
Refinance Companies Online:
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Contact a mortgage lenders to see if you qualify to refinance your current mortgage. Rates dropped in 2011 and continue to to be very low in 2012. Refinancing can save you big!
A Note About Sub Prime
Lenders
Sub prime lenders offer B,
C, and D credit, which means they offer credit to high
risk lenders. For taking on these high-risk loans, sub
prime lenders charge slightly higher interest rates and
fees.
Some sub prime lenders charge
excessively high fees, but you can screen these out by
comparing mortgage rates. Online mortgage lenders make
this easy with their online quotes and posted rates.
Applying For Refinancing
Applying for refinancing has
been made easy with the internet. The first step is to
collect several financing offers, and sort through them.
Look for low fees and interest rates.
Once you have picked a mortgage
lender, fill out the application either online or request
an application mailed out to you. Once you have submitted
your application, it will be reviewed and processed. You
refinancing should be completed in about 6 weeks.
Getting Financing Approval
Getting approval for your
refinancing application is a common concern. While lenders
approve more B, C, and D credit loans today, you can also
stack factors in your favor. Paying off loans, closing
unused credit card accounts, and making regular payments
on credit cards and other loans will help. Another step
is to put a note in your credit report explaining the reason
for past due bills, foreclosures, or bankruptcy.
Rebuilding Your Credit
The next step to rebuilding
your credit is to make regular, on time payments on your
refinanced mortgage and other bills. Making regular payments
is the single fastest way to establish good credit. Make
the bill payment easy by setting automatic withdrawals
through your bank.
Refinance With Good Credit
After you have established
a good credit history, apply again to refinance your home
for lower interest rates. If you declared bankruptcy, wait
at least two years to refinance. However, if you simply
had a series of late payments on your credit, wait a year
before researching refinancing options.
Here are our recommended sources for bad credit refinance lenders online:
See below for the Most Reputable Lenders:
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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.
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