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