When a tsunami has crashed upon someone’s finances, the result could be a need to refinance his mortgage because he’s falling behind on his payments.
Pittsfield, MA -- (SBWIRE) -- 03/29/2013 -- Real-estate-yogi.com knows quite a bit about refinancing a home with bad credit, and is happy to share its knowledge, including:
- Develop a Plan
- Credit Reports
- “Risky” Financers
A wise suggestion to follow prior to attempting to refinance a home with bad credit is to wait a few months. Use the time to save a bit of money, and begin to pay off some debt. The more creditors that get paid off, the better one’s credit become. This, in turn, means that one is exhibiting the ability to be responsible with his money, which makes lenders more inclined to approve a refinance.
Go Over Credit Reports
After about age 18, everyone develops credit, meaning they also have credit reports. These reports indicate to lenders how creditworthy an individual is, which determines his ability to refinance a home mortgage with bad credit. Each person has three reports, one from different reporting bureaus, Experian, TransUnion, and Equifax. Go online to each one and get the reports then go over them closely. Look for errors or fraudulent items. If any are there, dispute them. Taking the time to do this can result in having 20% of negative items removed from the reports.
Get Approved to Refinance Home Mortgage Loan with Bad Credit or No Credit
In order to refinance a home loan with bad credit, a person may have to look to high-risk lenders. High-risk financers can provide folks with poor credit with loan refinance, but the interest rate will be high. Where traditional banks cannot accommodate low-credit individuals, these lenders can. This is because they have access to sources of finance that regular banks don’t, making it easier to approve bad credit refinances. Many of these lenders have ads everywhere, especially on the Internet, so finding one shouldn’t be difficult.
Federal Government Assistance
Under the Obama administration’s HARP (Home Affordable Refinance Program) homeowners looking into refinancing a home with bad credit can get the help they need. To qualify for HARP, the original mortgage must be owned by Freddie Mac or Fannie Mae and the mortgage has to have been obtained on or before January 1, 2009. It’s also required that a homeowner be upside down on his mortgage, meaning that the home is worth less than what’s owed on it. If one meets all this criteria, he can get his mortgage refinance.
Real-estate-yogi.com is a user-friendly website located in Pitts field Massachusetts that connects people who need to know about real estate with the professionals who can fill them in. For a free consultation, dial 1-800-987-1397.