Credit  score is certainly very important things when it come to refinance your mortgage. If you’ve bad credit score then it will be difficult for you to get a mortgage. Yes, If your credit score is lower than the margin , then your refinancing options are limited. hoping to save some bucks on interest costs, then you must know that you need to have a robust credit history for that. you’ll either not qualify for a refinance or have to pay high interest rates or a huge closing cost. Nevertheless, there is hope for homeowners, with less than ideal credit rating. You can go for FHA-insured mortgage, even with a so called bad credit. Make sure you calculate your mortgage time to time to keep a track of your mortgage payments and avoid hurting your credit any further.

Consider the following steps while qualifying for a mortgage with a bad credit score.

Step- 1 At first you need to find out an experienced and efficient mortgage broker, who can work more effectively than a regular lender. He helps you to  present all your information to several different lenders. He can even broaden your chances of finding someone to grant your loan.

Step- 2 Now, you need to review your credit report thoroughly. For this,  you should ask for your credit reports from each of the three major credit bureaus Experian, Equifax, and Transunion individually. Check your credit report close to find out any discrepancy in them or find any delinquent account is recorded. If you find any such errors or mistakes, then you need to ask the credit bureaus to rectify them. Thus you can retrieve your credit score to some extent.

Step- 3 These 2 steps are just the basic. You need to work more hard to find out mortgage at favorable rate. Thought the work is not so easy but, you need to work hard shop around. Try to compare the offers of different lenders, before signing any application. Try not to  jump on the first offer. Select the lenders, verify their offer before obtaining the mortgage. You may find the best loan terms, lowest interest rates and reasonable closing cost as well.

Step- 4 Remember, the lender may ask you to show your income status.If you have a good job which pays you pretty well, then you may get approval for a mortgage even with your bad credit status.

Step- 5 Try to pay off all your due bills, credit cards debts. Because, lender will not give your mortgage if you have higher debt to income ratio.

Step- 6 lastly, if you can’t qualify for a single loan due to bad credit convince a friend or family with a good credit history to cosign for you. It will not only help you retrieve your credit, but also help you convince the lender as there is someone with good credit behind you to backup your loan. This will certainly help you avail a better rate than one you would otherwise get on your own.


Most importantly, when you’re looking for a bad credit mortgage, avoid the lenders, who commit things that seem too good to be true. Mostly they are scam mortgage lenders, who can dig a deeper hole of financial damage for you and can prevent you from getting a loan for even longer. Make sure you check the company out with the better business bureau first, before applying for a mortgage refinance.