If you are a homeowner with a recent bankruptcy, refinancing your mortgage can help you rebuild your credit. Here are several tips to help you qualify for the best mortgage wile you rebuild your credit rating.
Once your bankruptcy is finalized you need to wait six months before you think about refinancing your mortgage. Qualifying for a new mortgage after bankruptcy will make rebuilding credit a much easier process. You can repair your credit after a bankruptcy in as little as two years; once this is done you can refinance again to take advantage of better interest rates and terms.
Clean Up Your Credit
Having a recent bankruptcy on your record is a financial hurdle you will need to overcome. Once your bankruptcy is finalized, focus on making all of your payments on time. Open a credit card and make small, regular purchases. Make sure you pay off the balance on a regular basis and make all of your payments on time.
Shop for the Best Mortgage Offer
Once you have established credit and are making your payments on time you can start shopping for a new mortgage. It is important to shop for the best lender as the interest rates, terms, and fees vary widely from one mortgage lender to the next. When you compare mortgage loan offer it is important to compare all aspects of the mortgage, not just the interest rates.
Choose the Best Mortgage Offer
When shopping for new mortgages, homeowners often make the mistake of comparing loan offers based on the interest rate or Annual Percentage Rate alone. This is not enough to make an informed decision as it does not include many of the fees associated with the loan such as closing costs. In order to make an informed decision as to which loan is best you need to carefully examine the Good Faith Estimate and compare all aspects of the loan. To learn more about your mortgage options, including how to comparison shopping loan offers while avoiding common mistakes, register for a free mortgage guidebook.
To get your free mortgage guidebook visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.
Claim your free guidebook today at: http://www.refiadvisor.com
