Refinance Home Mortgage Loan With Poor Credit - 3 Tips On
Getting Approved
by Carrie Reeder
Refinancing your home mortgage is the cheapest type of credit
you can access when you have a poor credit history. Based on
your property's value and equity, you can pull out cash for home
improvements or to consolidate bills. Or you can decide simply
to reduce your rates and monthly payments. To get the best deal
on your next mortgage loan, follow these three tips.
1. Check Out Rates
Before you dive into a mortgage contract, check out rates first.
This will give you an idea of what you can borrow and at what
rates. It will also help you find the most competitive lender
for your type of credit.
At this point, you don't want to give permission for financing
companies to look at your credit report. Too many credit
inquires can really hurt your credit score. While loan estimates
aren't guaranteed, they can give a good idea of loan costs,
especially if they ask about your credit score.
2. Do Some Preventative Maintenance On Your Credit Report
Prior to completing a loan application, do a check up on your
credit report. It doesn't hurt to check for any mistakes. And
you may be surprised to find that you actually have a decent
credit history.
If you have the chance, pay off part of your debt to improve
your loan application. Having several accounts with low balances
rather than one or two maxed accounts will also help you qualify
for better rates.
3. Opt For Easier Terms
Sub prime lenders offer a variety of mortgage loan terms to help
you qualify for lower rates and payments. In general, adjustable
rate mortgages offer the lowest initial rates. The risk,
however, is that your payments will increase if rates go up.
But be open to lender suggestions. They may offer a unique
package that meets your future financial goals. For example,
some mortgages refi after two years if your credit score
improves.
In today's financing market, you don't have to be worried about
getting approved or not for a refinanced mortgage. You should be
concerned over finding the lowest costing financing. Luckily,
online lenders make the search so much easier.
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