Refinance Your Mortgage Loan After Bankruptcy

Refinance Your Mortgage Loan After Bankruptcy

Though it may seem impossible, refinancing your home loan after going through bankruptcy is feasible as long as you can meet certain requirements. Finding the right lender is however, a challenging task.

Refinancing After Bankruptcy is Possible fincance

Refinancing a home mortgage is probably one of the few financial transactions that someone who has gone through bankruptcy can achieve within a small period of time after the bankruptcy has been discharged. Since a mortgage loan is secured by an asset, the usually extremely low credit score bared by someone with a bankruptcy in his credit report isn’t that detrimental.

Raising your Credit Score

Moreover, refinancing a home loan is an excellent opportunity to raise your credit score and improve credit history. The monthly payments you make will be recorded into your credit report and this will contribute to a continuous increment on your credit rank.

However, since you won’t be able to apply for a refinance home loan till six months after your bankruptcy has been discharged. You need to work hard during this period in order to build a good credit history so as to make sure you get approved for your refinance home loan.

Getting Ready for Applying

In order to do so, you need to make all your payments on time including your current home loan installments. This is essential since any late payments or missed payments may be an obstacle between you and your refinance home loan.

If you haven’t done so yet, open a bank account, fincance either a checking or savings account and get a credit card. If you can’t get approved for an unsecured credit card, don’t hesitate, apply for a secured credit card and start using it and making regular payments. All this will help you build a healthy credit history and will ensure you get approved for a refinance loan.