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Preparing to Refinance a Missouri Mortgage After Bankruptcy
(presented by www.refinance-refinance.net - mortgage lenders)
By Jane A. Hale
Getting a Missouri mortgage refinance after bankruptcy sometimes means paying rates and fees that are slightly higher than normal. If you want to lower your costs, there are several things you can do to prepare prior to applying for the loan.
Wait the Appropriate Amount of Time
While it is possible to find a lender who will refinance your Missouri mortgage the day after your bankruptcy is discharged, you might be better off to wait at least six months before applying for a loan. This will give you more lending options, as well as more lenders, to choose from. If you wait two years, you will have even better options and better credit.
Focus on Your Credit
While you are preparing to refinance after bankruptcy, you should be focusing on rebuilding your credit. People with good credit qualify for the best rates and terms on Missouri mortgage refinance loans. The average credit score in Missouri is 683. Though it will take some time to get your score this high, you should at least try to get up to 600 prior to applying for a loan. If you can get your score up to 650, you will qualify for conventional rates and terms.
Save Up Some Money
If you are even thinking about refinancing your Missouri mortgage after bankruptcy, you should start saving now. On average, it costs Missouri borrowers $2,713 to close on a mortgage refinance. If you have a bankruptcy on your record, you may be subject to higher lending fees and closing costs. By putting the money away now, you won’t be forced to stretch your finances when the time comes to close on the loan.
