Bad Credit Mortgage Refinance : Get a Good Mortgage with Bad Credit
When you originally purchased your house, you no doubt got your mortgage based on your good credit standing. Have things changed since then? If it's coming up time to renew your mortgage and the economy has done a number on your financial situation, don't worry. You can still get a good mortgage with bad credit. You just have to know how.
Do You Even Need a Bad Credit Mortgage?
The first thing you need to do is determine is whether or not a bad credit mortgage is even necessary for you. Check your circumstances against this list:
- You have a credit score that is less than 620
- You have missed either one 60 day mortgage payment in the past 24 months or two 30 day payments in the past 12 months
- Each month is a struggle to make ends meet
Do any of these describe what's going on in your life right now? If so, you are likely in the category that requires a sub-prime lender. In other words, a bad credit mortgage.
Get a Bad Credit Mortgage Refinance Quote Now
How a Sub-Prime Lender Can Help You
When your credit rating deems you a high risk by the standard banking institutions, a sub-prime lender can be a homeowner's best friend. They are willing to lend mortgage money in higher risk situations. The interest rate may be higher than with conventional lending companies such as banks, but they offer an opportunity for you to keep your home and rebuild your credit rating. You may even be able to consolidate your bills or free up some money, if you have equity in your home.
How to Get a Good Mortgage with Bad Credit
The best thing that you can do to get the ball rolling is some research. Check current markets and going interest rates so that you can make a well informed decision. Once you've found two or three companies that you consider worthy of your business, fill out their online forms.
One caution about supplying information for mortgage applications (or any loan) is to never give permission for a credit check or give out your social security number. The credit checks show on your credit report and your SSN can be used to steal your identity. So, be careful and only allow access to these things to the final lender(s) that you feel fairly certain that you'll deal with.
After you fill out your forms, you should receive quotes back from various lenders. How many depends on how many companies you approached. If you receive a quote verbally, either over the phone or in person, make sure to get the details with all costs down in writing. That way, if you choose to work with that lender, the rates are held until you sign the final contract.
Something to check into while going through this process is the fine print of your current mortgage. Are there any penalties that could be incurred by your refinancing? You want to know everything you're dealing with so that there are no surprises.
It's actually quite easy to get a good mortgage with bad credit, as you've read in this article. Why not start right now and put your mind rest?
