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A 2nd mortgage loan after a bankruptcy is possible in as little as two years. Refinancing your mortgage can help you make needed home improvements or pay off high interest debt. Refinancing with adverse credit history requires savvy shopping on your part to ensure that you get a reasonable 2nd mortgage loan.
Building Good Credit
After a bankruptcy, take the next two years to rebuild your credit history. By making regular payments and building up cash reserves through a savings account or saving bonds, you will put yourself in a better position to refinance your home.
Sub Prime Brokers
Your credit report will list your bankruptcy for seven to ten years, so you will need to go through a sub prime mortgage broker. A sub prime mortgage broker offers loans at slightly higher rates to high risk lenders.
Sub prime brokers vary in the amount of fees and points they will charge. With adverse credit, you should expect to pay a couple of points higher than a traditional loan. The best way to ensure you are getting a competitive rate is to shop around.
Searching For Rates
Sub prime brokers have moved online, allowing you to easily compare rates and fees. You can gather general quotes by giving out basic information like how much you want to borrow and your property’s current value.
With these basic quotes you can quickly compare financing costs. Be sure to include fees when you consider the total cost of the loan. Once you have compared several financing quotes, pick the top three to investigate further.
Comparing Real Quotes
Mortgage rates are determined my many different factors such as property location and your employment history. In order to get a real refinancing quote, you will have to provide this detailed information to a sub prime broker. You can do this through online mortgage websites with no risk.
Compare the rates, fees, and terms of each refinancing offer. If you have any questions, you can contact the sub prime broker over the phone or through their website.
Applying Online
Once you have picked the best offer, you can finish the process online. Sub prime brokers will either have you fill out the application online or through the mail. In both cases, the final paperwork will be mailed out for your approval and your loan will be processed.
To view our list of recommended
bad credit mortgage lenders online who can help you with a 2nd mortgage.
Visit this page:
Recommended
Bad Credit Mortgage Lenders Online.
Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.
Article Source: http://EzineArticles.com/?expert=Carrie_Reeder
Monday, March 30, 2009
Bad Credit 2nd Mortgage – Fast and Easy Online Approval
The primary reason why homeowners apply for a 2nd mortgage is to find an effective means of reducing debts and having extra money for necessary home repairs. There are benefits to this approach, as well as a negative side. Before applying for a second mortgage, homeowners should examine their reason for needing the funds. Also, considering one’s credit situation is important. This way, homeowners know which lenders to apply with.
Purpose of a 2nd Mortgage
A 2nd mortgage is practical for debt consolidation, home improvements, college tuition, wedding expenses, and so forth. Getting approved with a good or high credit rating is simple. Furthermore, persons with a good rating may qualify for larger amounts and pay less interest. Still, many lenders seek applicants with less than perfect credit. In fact, these lenders encourage persons with bad credit to obtain 2nd mortgages, which could gradually help raise their credit score.
Even though acquiring a 2nd mortgage and paying off debts will not magically raise one’s credit score by 100 points, it is a good starting point. Once the debts are repaid, and the homeowner continues to demonstrate wise use of credit, (keeping balances low, paying debts on time), their score will improve.
Suitable Lenders for Bad Credit Applicants
If applying for a 2nd mortgage with poor credit, your choice of lenders may be few. Some homeowners obtain their loan from the existing lender. However, if you applied for the original loan with a high credit score, and your credit score has since decreased, the lender may not approve the request for a 2nd mortgage.
In this case, homeowners would need to find lenders willing to approve loans to persons with less than perfect credit situations. These include sub prime or high risk mortgage lenders. Even though applicants will pay more interest due to their low credit rating, they may have the opportunity to refinance the 2nd mortgage, and obtain a lower rate when credit improves.
Tips for Applying Online
Applying online for a 2nd mortgage is easy and convenient. Moreover, homeowners are encouraged to shop around for the best deal before accepting a lender’s offer. If using the internet to apply for the loan, comparing various offers is super easy. Simply submit a quote request with an online broker, and wait for the broker to match you with potential mortgage lenders. Here is a list of recommended Bad Credit 2nd Mortgage Lenders online. It's important to use a reputable lender online to make sure your personal information is secure.
For more information about a 2nd mortgage or a Bad Credit Home Mortgage Lender Online, ABC Loan Guide has names of reputable lending companies. Also, see their related links for a Home Owner Personal Loan
Article Source: http://EzineArticles.com/?expert=Carrie_Reeder
Purpose of a 2nd Mortgage
A 2nd mortgage is practical for debt consolidation, home improvements, college tuition, wedding expenses, and so forth. Getting approved with a good or high credit rating is simple. Furthermore, persons with a good rating may qualify for larger amounts and pay less interest. Still, many lenders seek applicants with less than perfect credit. In fact, these lenders encourage persons with bad credit to obtain 2nd mortgages, which could gradually help raise their credit score.
Even though acquiring a 2nd mortgage and paying off debts will not magically raise one’s credit score by 100 points, it is a good starting point. Once the debts are repaid, and the homeowner continues to demonstrate wise use of credit, (keeping balances low, paying debts on time), their score will improve.
Suitable Lenders for Bad Credit Applicants
If applying for a 2nd mortgage with poor credit, your choice of lenders may be few. Some homeowners obtain their loan from the existing lender. However, if you applied for the original loan with a high credit score, and your credit score has since decreased, the lender may not approve the request for a 2nd mortgage.
In this case, homeowners would need to find lenders willing to approve loans to persons with less than perfect credit situations. These include sub prime or high risk mortgage lenders. Even though applicants will pay more interest due to their low credit rating, they may have the opportunity to refinance the 2nd mortgage, and obtain a lower rate when credit improves.
Tips for Applying Online
Applying online for a 2nd mortgage is easy and convenient. Moreover, homeowners are encouraged to shop around for the best deal before accepting a lender’s offer. If using the internet to apply for the loan, comparing various offers is super easy. Simply submit a quote request with an online broker, and wait for the broker to match you with potential mortgage lenders. Here is a list of recommended Bad Credit 2nd Mortgage Lenders online. It's important to use a reputable lender online to make sure your personal information is secure.
For more information about a 2nd mortgage or a Bad Credit Home Mortgage Lender Online, ABC Loan Guide has names of reputable lending companies. Also, see their related links for a Home Owner Personal Loan
Article Source: http://EzineArticles.com/?expert=Carrie_Reeder
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