How To Refinance Your Mortgage With Bad Credit
Simple tips for refinancing your mortgage with bad credit.
When it comes to refinancing your mortgage, there’s plenty of issues that can crop up (which is especially true if you carry the burden of bad credit.) However, there’s still a few ways one can navigate such madness and still end up a winner when refinancing your mortgage. Thankfully, we have the information you need to overcome this difficult obstacle. Here’s a look at how you can refinance your mortgage with bad credit.
Helpful Refinancing Tips
Even if you have bad credit, it’s still possible to refinance your mortgage. Propillo allows you to shop from several providers. That’s right, even if you’ve filed for bankruptcy, it’s still possible to set up refinancing. Although you may not have access to the best loans with low interest, there still hope. Such things you can do to prove you’re worthy of a refinancing loan would include:
- Show Off Your Savings — If you happen to have money saved up or expect a raise in the near future, you’ll want to use such information to make your case when attempting to refinance your loan. Lenders want to make sure that you have cash reserves, so proving that you have a nest egg (or plan on creating a nest egg) will put odds in your favor. If you happen to have an emergency fund set aside, it proves to the lender that you’re prepared in the event of an unforeseen circumstance.
- Make An Attractive Application — Displaying low credit scores on your application may not win a lender over, so highlighting qualities that prove you’re responsible is essential on this paperwork. For example: You’ve held down the same job/occupation for years, which is something that you’d want to emphasize on. Knowing that you keep a steady source of income is appealing to lenders.
- Find A Co-Sign – Finding a person (a family member, close friend, etc.) to co-sign on a loan might be a great idea if you’re unsure if you’ll be approved for a loan. However, the person you have co-sign on your loan needs to have better credit AND have stable finances in order to help your case. In addition to this, they’ll also be on the hook on the event you don’t hold your weight on the bargain (which does add some weight to the issue.)
- Apply for FHA Streamline Refinance — If you happen to have your loan through the Federal Housing Administration, it’s possible that you may be eligible for streamline refinance. In addition to not requiring an appraisal, streamline refinancing keeps the paperwork to a minimal and makes the process less confusing. However, many lenders expect applicants to have a minimal credit score of 640.
- Government Refinancing Loans — If you find yourself in a sticky situation, the federal government does offer refinancing loans (even if the individual has bad credit.) Such programs include HAMP, HARP, and HUD to name a few.
Considering the information above, there’s plenty of ways to climb out of such a difficult situation. So if you’re looking to compare your mortgage, do your research and compare your options to find the best option for you.