How to Refinance Mortgage with Bad Credit - Get Expert Advice For Free

Get assisted to learn how to refinance your mortgage with bad credit online. Take advantage of advice offered by a competent local mortgage specialist in your local area. Act to qualify for lower interest rates and highly flexible loan repayment terms. To get started with your task, apply online now!

How to Get a Mortgage Loan with Bad Credit? Few Tips to Get Started

  • Obtain Copy of your Credit Report – It is important to know status of credit from the lenders’ perspective. To that effect, get free annual copy of your personal credit profile by visiting for making sure that it is free of any errors or mistakes. Such a move could enable you to qualify for the lowest and best rate of interest.
  • Take Steps to Reduce your Credit Debt – By taking some effective steps for reducing your credit card dues, you can build some credit before you approach various home refinancing loan lenders. The best way to do it is to consolidate all high interest credit debts and pay them off at one go with a favourable monthly repayment plan.
  • Fix Consultation with a Mortgage Broker - If you consult a licensed mortgage specialist, you have the chance to discuss your specific home refinancing needs with him in detail. Besides, he may also help you with the application process apart from enabling him to make an informed decision on getting your house refinanced.
  • Look for Specialized Online Loan Dealers – Obtaining approval for a low interest rate mortgage refinancing loan with bad credit can be practically very difficult. So your best bet is to try and work with online lenders that specialize in providing home refinance loans at lower rates to borrowers regardless of the status of their credit histories.
  • Ensure that your LTV Ratio is Less Than 80% - To avoid spending money on Lender’s Mortgage Insurance (LMI) for loans with extensive paperwork, it could be better if you convince your home refinance loan lender that there is enough equity built up in your house or you have monetary savings for ensuring that your Loan-To-Value ratio is below 80%.

How to Get a Home Mortgage Loan with Bad Credit? Check If It Is Right Option First

If you are wondering, "How can I refinance my home with bad credit?" then you need to know that it is time you consulted a mortgage expert at the earliest. This is because although mortgage refinance rates are at record lows, as you have bad credit, it could be vital for you to first analyze whether home refinancing is right option for your specific circumstances.

Learn How to Qualify For a Mortgage with Bad Credit in Just 5 Simple Steps

At MortgagRefinance101, we will teach you how to obtain a mortgage with bad credit for refinancing your home to a lower rate in 5 easy steps as are mentioned below.

  • Secure free copy of your credit report from the 3 major credit reporting agencies in the country and check if there are any errors on it. Get mistakes removed from credit profile before you start researching various options available at your disposal to get your home refinanced to lower rate.
  • Make sure that your credit score is at least 620, only the FHA approves homeowners for low rate home refinancing if they have credit ratings below 600. To obtain the lowest and the best interest rate, you must have good credit if that is not the case, improve credit rating first.
  • For approving your bad credit home refinancing loan application, most of the mortgage refinance loan providers will verify whether you have a stable and steady job which fetches you sufficient monthly income every month for paying monthly instalments regularly on time excluding other monthly expenses and credit debt payments.
  • The main factor which affects credit score is debt repayment history of an individual. Hence, if you have developed bad credit, it could be advisable for you to take effective steps for reducing your high interest credit card debts, personal loan dues , etc. that will help in building credit faster.
  • To improve your DTI ratio, you need to ensure that the amount of money being owed in debt is lower than the level of your monthly income. If this can be achieved then most of the lender will see it as a responsible financial behaviour and grant your application early approval.

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how to get a home mortgage loan with bad credit

How To Apply For A Home Loan With Bad Credit Online And Get Approved?

Remember those 5 factors we told you about above? Well those are the factors that will help to determine what refinance loans will cost you. A low credit score because you are 90 days late or more with a mortgage payment will likely disqualify you immediately, but late car, credit card or instalment loans may not. Your credit score and the other factors above will likely determine the interest rate as well. The lower the score the higher the rate is a simple way of stating it.

  • Get a Copy of your Credit File - Secure free annual copy of your credit record and make sure that it is correct and accurate prior to applying for a mortgage refinance loan with bad credit online.
  • Take Steps to Settle any Outstanding Debts - If you can settle your credit card or any other form of debts that you may owe then most of the homes refinance lenders will treat that as a positive move.
  • See If a Credit Repair Service Can Help You - To get over your credit score woes, you may even think of getting help from a non-profit credit counselling and repair service. This will help you in removing negative listings from your credit profile.
  • Apply for a Loan with a Specialist Lender Who Looks Beyond the Numbers - With bad credit rating, your best bet to get a home refinance loan approved is through a specialist online lender and the right place to locate one is the internet.
  • Don't Apply for Too Many Loans in One Space of Time - If you apply for bad credit home refinancing loan with multiple lenders then it can adversely impact your credit report as there will be too many inquiries on your credit record.
  • Tell your Lender About your Bad Credit Listings Honestly - When applying for home refinance with bad credit, it could be advisable for you to tell the lender, which you have chosen to work with, about each of your past debt repayment issues by asking for a face to face meeting.
  • If you can Avoid Applying with a Spouse with Bad Credit Do So - In case your partner or spouse also has bad credit then it is better that you apply for a bad credit mortgage refinance loan all alone so that it does not have any kind of negative impact on your credit rating.
  • Eliminate your Other Debts to Make your File Look Better - If you can close down all your previous open credit accounts then your credit score will improve and by eliminating all debts, your chances of obtaining bad credit home refinance approval will increase.