Refinancing after a bankruptcy is not impossible, but it does take some work, and while some companies will refinance a day after the bankruptcy is discharged, it is not a good idea because the lender is not the most reputable.
Use the six months to prepare properly for the refinance.
Research lenders and their rates the easiest method is using online resources.
Lenders who deal with discharged bankruptcy refinancing are sub-prime lenders and as expected these mortgage lenders will charge more fees and higher interest rate, hence the importance of doing the research.
Try for a slightly higher interest rate and the fees are usually lower.
The optimum package will include savings on the closing costs.
It is important to figure in the closing costs because if the thousands that could spent on the closing, the monthly payments and amortization period could result in the short term appearance of saving money, but really be taking away from your personal wealth.
Look for a lender with a well rounded package: long mortgage terms with low interest, an open mortgage with the ability to pay off or even with an automatic refinance option when your credit score is improved.
Rebuilding your payment history is crucial to getting the best mortgage terms.
Credit scores are still important therefore it is recommended that a credit card account be opened with a reasonable daily balance and keep the payments current.
Make sure the current mortgage payments are made on time proving to the lenders that risk has improved.
As always having cash will improve your position when the mortgage terms are being negotiated.
The larger the down-payment the less risk the lender has, while giving the assurance that you are serious; therefore, the better your position.
Hold onto the equity you have; that equity will improve your credit score.
The importance of equity is minimal with the bankruptcy refinance on the mortgage with the sub-prime lender.
These lenders seldom look at the equity, but the overall position.
When you are in a better credit position the equity can be used to go from a sub-prime mortgage to a prime mortgage, or when you are trying to secure 100% financing.
Save the built equity and use it later when it is the most beneficial to you.
A refinance is used to lower the payment and save money so it is crucial to ensure the terms will allow for that.
ARMs (Adjustable Rate Mortgages) are a good place to start.
If income to debt ratio allows for the flexing of monthly payments the interest rates are lower.
Remember to allow for the later refinancing of the new mortgage because the higher your credit score the better your terms.
Expecting to pay fees is basic as the lender must work harder to get the better deal.
Submitting the documentation as soon as possible will allow the chosen bankruptcy mortgage lender the time to get the better interest rates and terms.
The better you are at helping the lender and the better you use the six months to your advantage the better the deal and the more productive the bankruptcy refinance will benefit you.
Use the six months to prepare properly for the refinance.
Research lenders and their rates the easiest method is using online resources.
Lenders who deal with discharged bankruptcy refinancing are sub-prime lenders and as expected these mortgage lenders will charge more fees and higher interest rate, hence the importance of doing the research.
Try for a slightly higher interest rate and the fees are usually lower.
The optimum package will include savings on the closing costs.
It is important to figure in the closing costs because if the thousands that could spent on the closing, the monthly payments and amortization period could result in the short term appearance of saving money, but really be taking away from your personal wealth.
Look for a lender with a well rounded package: long mortgage terms with low interest, an open mortgage with the ability to pay off or even with an automatic refinance option when your credit score is improved.
Rebuilding your payment history is crucial to getting the best mortgage terms.
Credit scores are still important therefore it is recommended that a credit card account be opened with a reasonable daily balance and keep the payments current.
Make sure the current mortgage payments are made on time proving to the lenders that risk has improved.
As always having cash will improve your position when the mortgage terms are being negotiated.
The larger the down-payment the less risk the lender has, while giving the assurance that you are serious; therefore, the better your position.
Hold onto the equity you have; that equity will improve your credit score.
The importance of equity is minimal with the bankruptcy refinance on the mortgage with the sub-prime lender.
These lenders seldom look at the equity, but the overall position.
When you are in a better credit position the equity can be used to go from a sub-prime mortgage to a prime mortgage, or when you are trying to secure 100% financing.
Save the built equity and use it later when it is the most beneficial to you.
A refinance is used to lower the payment and save money so it is crucial to ensure the terms will allow for that.
ARMs (Adjustable Rate Mortgages) are a good place to start.
If income to debt ratio allows for the flexing of monthly payments the interest rates are lower.
Remember to allow for the later refinancing of the new mortgage because the higher your credit score the better your terms.
Expecting to pay fees is basic as the lender must work harder to get the better deal.
Submitting the documentation as soon as possible will allow the chosen bankruptcy mortgage lender the time to get the better interest rates and terms.
The better you are at helping the lender and the better you use the six months to your advantage the better the deal and the more productive the bankruptcy refinance will benefit you.