| Those with poor credit should carefully consider | | | | carefully consider whether or not their credit has |
| whether or not re-financing is ideal for them at | | | | improved since the original mortgage was secured. |
| the present time but the process is not much | | | | Homeowners who have documented proof of |
| different for them as it is for those with good | | | | past credit scores can compare these scores to |
| credit. | | | | current values. Each citizen is entitled to one free |
| Those with bad credit who want to learn more | | | | credit report per year from each of the major |
| about re-financing should consult a mortgage | | | | credit reporting agencies. Homeowners can obtain |
| advisor who specializes in mortgages for those | | | | these reports for use in making comparisons to |
| with bad credit. Additionally the homeowner should | | | | the previous credit scores. Imperfections on the |
| carefully evaluate their credit score and whether | | | | credit report such as bankruptcies, delinquent or |
| or not it has improved. Finally the homeowner | | | | missed payments and other transgressions do not |
| should evaluate their options carefully to ensure | | | | remain on the credit report. |
| they are making the best possible decision. | | | | Evaluate Re-Financing Options Carefully - Once a |
| Consult a Mortgage Advisor - Consulting with a | | | | homeowner has tentatively made a decision to |
| mortgage advisor is recommended for those with | | | | re-finance the mortgage, it is time to start |
| poor credit. These homeowners may be | | | | considering the many options that are available to |
| knowledgeable about the process of re-financing | | | | the homeowner during the process of re-financing. |
| but their situation warrants consulting with an | | | | Most homeowners mistakenly believe one factor |
| industry expert. This is important because a | | | | of the re-financing process they have no control |
| mortgage advisor who specializes in obtaining | | | | over is the interest rate. While this rate is largely |
| mortgages and re-financing for those with bad | | | | dependent on the homeowners credit score, even |
| credit will likely be very knowledgeable about the | | | | those with poor credit have the ability to lower |
| types of options available to the homeowners. | | | | their interest rate by purchasing point. A point is |
| When consulting with the mortgage advisor, the | | | | typically equally to 1% of the total loan amount |
| homeowners should be completely honest about | | | | and may translate to a ¼ of a percentage |
| their financial situation and should provide the | | | | point on the interest rate. When deciding whether |
| expert with all of the information he needs to | | | | or not to purchase points, the homeowner should |
| assist them in finding an ideal re-financing | | | | carefully consider the amount of time it would |
| agreement. | | | | take the homeowner to recoup the cost of |
| Consider Whether or Not Your Credit has | | | | purchasing the points. |
| Improved - Homeowners with bad credit should | | | | |