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