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Refinance Home Loan after Bankruptcy: How to Qualify for a Better Mortgage with a Bankruptcy

If you are a homeowner with recent bankruptcy on your record you might think refinancing your home loan is not possible. Ten years ago this was true; however, today there is a type of mortgage lender that specializes in bad credit and bankruptcy mortgages. Here are several tips to help you qualify for the best mortgage when refinancing your home loan with a recent bankruptcy.Refinancing home loans is a stressful time for homeowners with good credit. If you are struggling with poor credit and have a recent bankruptcy there are a number of steps you can take to improve the interest rate and terms you will qualify for on the new loan. Here are three steps you can take starting with your credit.I. Review Your Credit ReportsAs soon as your bankruptcy is complete you need to request copies of your credit reports from the three credit agencies. Your credit reports will contain your bankruptcy along with negative information form each of the creditors listed on your bankruptcy. There is nothing you can do about this negative information; however, if you find errors in your credit reports you need to dispute the error and have it removed.II. Build a Favorable Payment HistoryOnce your bankruptcy is complete open a credit card account with a company that specializes in credit cards for individuals with poor credit. Expect the interest rate on this card to be extremely high; however, you can use this to rebuild your payment history. Maintain a low balance on this credit card and make all of your payments on time. In as little as 24 months you will find creditors willing to work with you offering competitive interest rates.III. Shop for the Best Mortgage LenderIf you are unable to wait 24 months before refinancing your home loan, you can find a decent lender in as little as six months. Because you will be paying more for your new mortgage it is important to shop from a variety of mortgage lenders and brokers for the most competitive offer. When shopping for a home loan you need to compare all aspects of the mortgage loans, not just the interest rates.To learn more about refinancing your home loan after a recent bankruptcy, register for a free mortgage guidebook.

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