Pittsfield, MA -- (SBWIRE) -- 08/28/2013 -- Real-Estate-Yogi.com is here to pass along its knowledge of this process, including:

- Plan Ahead
- High Risk Lenders
- Mortgage Institutes
- Review Credit Reports

Think Ahead

Before refinancing your home with bad credit, take some proactive steps. Make some moves toward repairing poor credit before applying for refinancing. For example, contact creditors to work out reasonable repayment schedules. Ask them if they’d consider dropping some of the principal from a debt, or decreasing the interest rate on it. Make arrangements to pay off the debt quickly to improve one’s credit score and have a better chance of refinancing approval.

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Sub-Prime Lenders

A sub-prime lender charges high interest rates to insure himself against the possibility of the borrower defaulting on the loan. These lenders can be helpful when refinancing a home with bad credit, but are usually the last resort for people looking for financing. Not only are the interest rates charges very high, but the terms of sub-prime loans can be difficult to work with. They may be too long, meaning that one must pay high interest for a long period, or too short, causing the payment to be just what the homeowner can afford, with little left over.

Mortgage Institutes

There are some private lenders, usually working out of a mortgage company, that will refinance home bad credit borrower. It can take some time to find the right one, though, so begin searching early and don’t give up easily. Expect a higher interest rate on any loan refinance with one of these financers, if for no other reason than one’s poor credit standing. Don’t take it personally when the loan officer tells one how high the interest will be; once one’s credit improves, so will the interest rate.

Go Over Credit Reports

The three major credit reporting bureaus are Experian, TransUnion, and Equifax, and all three allow individuals one free copy of his credit reports. Each bureau has different items on its report, and some of them may be incorrect or fraudulent, so review them carefully before applying for refinancing your home with bad credit. Dispute any errors found in writing and send the letters by return receipt mail and await the results. If the bureaus find in one’s favor, it can improve bad credit by as much as 20%.

About Real-Estate-Yogi.com
www.real-estate-yogi.com is a low cost website located in Pittsfield, Massachusetts committed to providing instant, credible responses to consumers’ property financing questions. There is always trained, knowledgeable staff on hand to answer phone calls so dial 800-987-1397 for a free initial consultation.