Bad Credit Mortgages
3 Things to Do Before Getting a Post-Bankruptcy Mortgage Refinance
Iowa borrowers who have a bankruptcy on their record may sometimes be required to make more of an effort to get a loan than the average borrower. If you have recently filed bankruptcy, here are three things in particular that you will want to do before applying for a post-bankruptcy mortgage refinance:
Take Time to Repair Credit
After filing bankruptcy, your credit score is probably lower than it has ever been. This will make it very difficult to get low interest rates, and in turn, low monthly payments. Before applying for your Iowa mortgage refinance, consider taking time to repair your credit.
You can start by opening a one or more new credit accounts and using them responsibly. You will also want to make an effort to make sure all of your bills are paid on time. One late payment can lower your score considerably. Though it could take several years to get your credit score back up to the Iowa average of 700, in just a few months, you could increase your score by 50 points or more.
Speak with a Finance Expert
The sub-prime lending industry is crawling with lenders who are willing to give you a loan that you can’t afford. Before getting talked into a post-bankruptcy Iowa mortgage refinance that you will have no feasible way to pay back, you may want to consider speaking with an unbiased finance expert who can evaluate your situation and help you to determine whether or not a refinance is right for you at this point in time.
Speak with Your Current Lender
Some mortgages have a pre-payment penalty tied to the loan. If you refinance or pay your loan off early, you may be required to pay these penalties. To find out whether or not your loan carries a penalty, you should contact your current lender prior to applying for a post-bankruptcy Iowa mortgage refinance.
