| | | | | about things like having had late payments or other |
| | | | | related issues. These brokers know that stuff happens |
| Many people today are faced with unemployment or | | | | during our lifetime and we may need extra help and a |
| under employment and find themselves thinking about | | | | second chance. Most of these bad credit lenders have |
| refinancing their current mortgage. Not everyone has | | | | great relationships with their underwriters and can talk |
| perfect credit and people have found that with all the | | | | to them on your behalf and get you the loan that you |
| trouble in the credit and banking markets that their | | | | need. |
| credit scores have gone down. Sometimes it brings | | | | Before you go and find a lender or try to get a loan, |
| them into the poor category which makes it real tricky | | | | you may want to get a copy of your credit report. |
| to refinance a mortgage when you have bad credit. | | | | There are a couple of ways to get a copy. One is by |
| The main two things any lender looks at when applying | | | | going to the credit reporting websites and asking for a |
| for a mortgage or refinance are income and credit | | | | free credit report, which you can do once a year. The |
| scores. If you tell the lending company that you are | | | | second way to get a credit report and work on fixing |
| receiving unemployment, they may question how long | | | | your credit is by contacting someone like CCCS. The |
| you will have an income, as unemployment benefits | | | | three credit reporting agencies will offer you ways to |
| can only last for a certain period of time. They are | | | | fix your credit (like paying more than the minimum |
| thinking, "What if this person loses their income? How | | | | payment due for credit card payments each month) |
| will they survive? How will they pay us?" Maybe you | | | | and so will CCCS. Ultimately, you can get your own |
| would live on credit cards until they are maxed out. | | | | report, see what is on there, and try to fix some |
| The bottom line is that they will not risk not getting paid. | | | | yourself, too. If there are any errors on your report, |
| Thank God there are companies out there who will let | | | | make sure that you dispute these with the credit |
| people with bad credit and lower incomes to refinance | | | | reporting agencies. They will fix any errors on there. |
| their mortgage. These companies usually have | | | | When you are ready and have found a mortgage |
| employees who get paid on commission, so they really | | | | lender for your bad credit home loan, it is a good idea |
| want to close a deal with you even more. They will | | | | to ask for a good faith estimate. This way, you can |
| work hard to get you a loan! These companies are | | | | see what the costs may be to be refinance, closing |
| lenient. They do not care if you have been late before | | | | costs, title search, etc. You may want to get more |
| on payments. They need you just as much as you | | | | than one refinance quote. Then, you can choose which |
| need them. | | | | one will work best for you by looking at each of the |
| Sometimes the mortgage broker might refer your bad | | | | good faith estimates. |
| credit refinance to the FHA. FHA loans are much | | | | Shop around for the right company if you are looking |
| easier to qualify for. They are also good for those that | | | | for a bad credit mortgage refinance. |
| do not have a lot of money to put down on a house. | | | | Take the time to ask for recommendations from |
| You can qualify for an FHA with just 3.5% down. It is | | | | friends and family. Word of mouth is sometimes the |
| easier to refinance your mortgage with bad credit with | | | | best way to find a good reliable, trustworthy company. |
| the FHA since they are more lenient and will even | | | | Above all else educate your self with current rates |
| consider applications that have prior bankruptcies. | | | | and requirements before you speak to a mortgage |
| Bad Credit Mortgage Brokers are more understanding | | | | broker. |