Simple Tips for Those Who Want to Refinance With Bad Credit

Jul 29, 2013

Refinancing your home mortgage when you have bad credit isn’t the ideal situation but it may be doable. Your first stop should be at your current lender. If you’ve made your payments on time every month since you initially took the loan out, then your lender may consider you a good risk and give you better terms than your credit would typically allow. If they’re not interested then you can move on to another bank. Look for those lenders who specialize in helping people refinance with bad credit. You don’t want to waste your time applying with a lender who only accepts borrowers with perfect credit.

 

Next, you want to make sure that you review the offer very, very carefully. You probably realize that because you have bad credit you’re not going to be offered the ideal interest rate. However, that doesn’t mean you have to accept any offer that comes your way. Look for the GFE, which is the Good Faith Estimate, and which tells you exactly what the fees for refinancing will be. You may find it worth these fees, but it’s important that you know what they are before you agree to a loan. The more information you have the more informed your decision will be.

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