Bad Credit Refinance Loans - Finding a Good Lender
Finding
a good lender to help you with refinancing your home loan can be tricky
if you have bad credit. There are plenty of predatory lenders out there
who would like to take advantage of you with excessively high interest
rates and fees. The key to finding a good lender is to know what are
reasonable terms and to compare lending companies.
Look At Your Credit Record
Credit
records are not perfect accounts. Before you apply to refinance your
loan, you should check to see that all your information is correct. If
you believe there is a false record, resolve it with the credit
reporting company.
You also want to know what your credit score
is. The lower the score the higher rate you will have to pay, but at
least you will have an idea of what to expect from a lender. Paying
three to five additional points is common for people with bad credit
history.
Compare Lenders
Lenders offer different
rates for the same type of loan, so shop around. The easiest way to
compare quotes is to use an online website. By entering your
information online, companies compete for your loan, offering you
better rates. The internet also allows you to compare mortgage lenders
outside your local area, possibly finding a better deal.
Once
you receive offers, compare the rates and fees. Often the fees are
where lenders make their money. Adding up the interest and fees, and
comparing that figure will give you the true cost of the loan.
Look For A Good Deal
Mortgage
lenders increase their profits by pushing loans with high interest
rates and points. Some lenders will push these types of loans even if
they aren’t best for you, so beware of fast-talking dealers. Be sure to
read the terms and look for hidden fees before you sign the paperwork.
Online
mortgage companies eliminate some of this risk by requiring mortgage
lenders to state their terms online. Online quotes are also more
competitive since lenders know you are probably shopping around to
refinance your loan. Once you have an offer, print out the terms for
your records.
To view our list of recommended bad credit or subprime mortgage lenders online,
visit this page:
Recommended
Bad Credit Home Mortgage Lenders Online.
About the Author
Carrie Reeder is the owner of ABC Loan
Guide, an informational website with articles and the latest news about
various types of loans.
Written by: Carrie Reeder
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