Refinancing your home mortgage loan with a poor credit rating can be an intimidating task. However, there are literally hundreds of mortgage lenders vying for your business in the sub-prime mortgage market. Because of this you can still find reasonable financing by shopping around and doing your homework.
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that can save you thousands of dollars on your next home loan.
The first thing you need to do is spit-shine your credit report as much as possible. You can request a free credit report from each of the reporting agencies once a year. Go over each of these reports with a fine-tooth comb and root out any errors. If you find mistakes in your credit report notify the appropriate agency and follow their procedures for making corrections. Another thing you can do is write a letter explaining your financial problems and what you are doing to get back on track. Most creditors will work with you to resolve your delinquencies.
Before jumping at the first mortgage offer a lender gives you, take the time to shop around and do your homework. If you have a poor credit rating working against your loan you cannot afford to skip this step. People with poor credit ratings are targets for predatory lending practices. The only way to protect yourself from these predatory lenders is to do your homework and learn as much as you can about mortgages and the mortgage industry.
This is where our free guidebook, “Five Things You Need to Know Before Refinancing Your Mortgage” can help you. All the information you need has been put together in one place. Best of all it’s free. This guide book will help you understand your credit, teach you how to shop around for a mortgage, and help you avoid potential pitfalls along the way.