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Refinancing is Possible Even After Bankruptcy

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Going through bankruptcy can seem rough enough, refinancing your home after going bankrupt is seen by most as even harder.
Here's some good news though, just 6 months after declaring bankruptcy, there will be mortgage lenders out there who will work with you on refinancing a home or condo loan.
More often than not, if you refinance now, even after a recent deceleration of bankruptcy, you can build your credit rating to a good healthy standing within 2 years.
In this article, I discuss steps that will help you find the best mortgage refinancing lender you can, and build your credit score.
Getting ready to refinance The moment you finalize the bankruptcy, you have about 6 months time to better your position in the mortgage refinancing game.
Start by keeping any debts you have, that are in good standing, paid off.
At this point, you cannot afford to have any other bad marks on your credit history.
Next, pay off as many debts that are outstanding as you can.
Instead of paying each a little, pay them off one at a time.
Your credit score already has a negative mark from outstanding balances, so taking any of them away is a positive sign.
If you have no credit cards, you should open one and make sure you pay it off in time.
Even make payments a little bigger then the minimum.
This is a good path to re establishing a positive credit history.
Also, if you don't have one get a savings account, keep your checking account.
Save cash, get rid of the non essentials and put all that extra cash into that savings account.
Adding a savings account and having actual cash saved in there looks better for your refinancing application.
Doing proper research on lenders When you think you are ready to refinance, make sure to scrutinize the potential mortgage lenders and rates.
Use the net to compare loans, terms, rates, and fees according to your particular refinancing position.
In most cases, taking a very slightly higher mortgage loan rate is in general better than the lower rate with inflated fees.
Also, you will probably have to work with a sub prime lender, as you have recently filed for bankruptcy.
Usually their are associated fees worked into the mortgage rate that vary, but are typically a few percentage points above the going mortgage rates.
Picking the right refinancing option If you are offered to take a part of your home or condo equity as cash, you should make sure that you need it for a major purchase.
Otherwise, you are better off leaving it tied up in the homes value, therefore helping improve your credit.
Once terms are established, you can submit your loan application through the mail or online.
Mortgage rates vary, sometimes hour by hour, so by the time your application is reviewed, and accepted the rate may have slightly changed, but no matter what you will have to sign something and finalize the loan before it is approved.
After The Refinancing If you completed your refinancing following these general ideas, you can count on an improved credit score in two years, all through refinancing your condo or mortgage loan.
Be sure to add regularly to the savings and continue to make your payments as normal.
In few years time you will be able to refinance again with a much improved credit score and the bankruptcy looming far behind you.
Good luck.
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