Bad Credit Mortgages
Improving Your Post-Bankruptcy Mortgage Refinance Loan Application
Before giving you a Tennessee mortgage refinance after bankruptcy, most lenders will evaluate whether or not approving you will be of a benefit to their financial institution. If they feel you are too much of a risk, you are sure to get a big, fat no. If you want to improve your chances of getting approved for a post-bankruptcy mortgage refinance loan, here are a few ways to sweeten your application:
Know Your Credit Report
Lenders will look at your credit report to determine whether or not you are a good candidate for refinance. Since you already have a bankruptcy on your credit history, you will need to make sure that all other negative information has been cleared up. If you have any outstanding accounts, pay them off. You will also want to correct any mistakes that appear on the report prior to applying for the Tennessee refinance loan.
Have Verifiable Income
Although there are many lenders who offer loans with no income verification required, they may be hard to get with a bankruptcy on your credit report. Even if you do get approved, you will be stuck paying a higher rate on your post-bankruptcy Tennessee mortgage refinance after bankruptcy than normal. What you want is clear indication of your income. This means supplying your lender with W-2s for the last two years, pay stubs, and bank statements. If you aren’t self-employed, you may also need to supply the telephone number of your current employer, so make sure you are truthful on your application.
Be Prepared to Explain Yourself
Don’t be surprised if your lender asks you to explain the circumstances behind your bankruptcy before approving your loan. Some lenders look at more than just numbers; they also look at back story. If they like what they hear, they may be more flexible with approvals, rates, and terms on your post-bankruptcy Tennessee mortgage refinance.
