CHOOSING A LENDER
Most lenders will have similar guidelines to qualify for refinancing. Generally, the higher your credit score, the lower the interest rate for which you can qualify. You must
demonstrate stable income history and have sufficient equity in your home. The lender will also require a list of your current debts, copies of your tax returns for a year or two, and proof of income, such as recent pay stubs. Check out at least several lenders and get quotes to compare their interest rates and terms. As we have seen, there are lenders who will agree to a loan, even if your credit rating and payment history are far from perfect. Reverse mortgages are one example of a loan that doesn’t rely on your credit or income. If you’re behind in your payments, it might still be possible to qualify for a reverse mortgage, if you have sufficient home equity. Before approaching a new lender, you might want to ask your existing lender whether they would be willing to modify your current mortgage, refinance it, or even offer you a reverse mortgage. Sometimes, dealing with a lender who is familiar with you and has your documentation on file can streamline the loan process.
A POOR-CREDIT OPTION
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