So many people are trying to refinance their mortgages today. A lot of people are doing this because they have lost their jobs and are getting less income. The income from unemployment is only a certain amount of what your income is when you are at work. The only problems with trying to refinance mortgage with bad credit is that they are getting turned down either due to lower income or due to having bad credit. Unfortunately, a lot of people have bad credit and can’t get a loan.

The main two things any lender looks at when applying for a mortgage or refinance are income and credit scores. If you tell the lending company that you are receiving unemployment, they may question how long you will have an income, as unemployment benefits can only last for a certain period of time. They are thinking, “What if this person loses their income? How will they survive? How will they pay us?” Maybe you would live on credit cards until they are maxed out. The bottom line is that they will not risk not getting paid.

Thank God there are companies out there who will let people with bad credit and lower incomes to refinance their mortgage. These companies usually have employees who get paid on commission, so they really want to close a deal with you even more. They will work hard to get you a loan! These companies are lenient. They do not care if you have been late before on payments. They need you just as much as you need them.

Sometimes, these mortgage lenders may find someone else to finance you, like the FHA. The FHA will accept lower down payments toward homes, as little as 3.5%, and they will even consider lending to you if you have had a bankruptcy or other bad credit issues. They are a lot easier to get a loan from than most lenders.

Bad Credit Mortgage Brokers are more understanding about things like having had late payments or other related issues. These brokers know that stuff happens during our lifetime and we may need extra help and a second chance. Most of these bad credit lenders have great relationships with their underwriters and can talk to them on your behalf and get you the loan that you need.

Before you go and find a lender or try to get a loan, you may want to get a copy of your credit report. There are a couple of ways to get a copy. One is by going to the credit reporting websites and asking for a free credit report, which you can do once a year. The second way to get a credit report and work on fixing your credit is by contacting someone like CCCS. The three credit reporting agencies will offer you ways to fix your credit (like paying more than the minimum payment due for credit card payments each month) and so will CCCS. Ultimately, you can get your own report, see what is on there, and try to fix some yourself, too. If there are any errors on your report, make sure that you dispute these with the credit reporting agencies. They will fix any errors on there.

Now, you are ready to look for a bad credit mortgage broker. You want to make sure to get a good faith estimate form the broker. Try to get a good faith estimate from at least three bad credit mortgage brokers. This way, you can compare the three and choose the one that will give you more and cost you less. When you are applying for a bad credit refinance, always ask for a good faith estimate.

Don’t be too hasty, like the old saying goes. “Haste makes waste.” Take your time, relax, shop around, and ask others about a bad credit mortgage company that they may have heard of. Maybe your own friends or relatives have used a lender who offers loans to people with bad credit. It is safer to use one that has good references. You can trust that they are honest and legit companies if you have had people who are close to you use these same lenders. Always make sure to check out any company thoroughly. The BBB is a great place to confirm whether a company is a good one to choose or not. If they had some bad marks, did they resolve them or are they still in dispute. Weigh out everything and be safe.

Fixing a bad credit report is not a pleasant experience. There are basically two ways of going about the credit repair process.

First, you can do it yourself. Second, you can hire a credit attorney. For all you “do-it-yourselfers” it is mighty tempting to try it on your own. After all, it is much cheaper, right?

Unfortunately you may discover that repairing bad credit is one of those projects that only appears easy. There is so much to the process including legal research and writing, which is challenging even for credit lawyers at times.

If you are not the type of person who enjoys legal research in your free time, or don’t have patience for translating wordy statutes and confusing case laws from around the country, then this might not be for you. But if you are determined enough to plow through the stacks of law books, then you should expect to spend at least a a few Sunday afternoons researching applicable credit laws at your local library.

Once you have waded through the stacks of law books and thoroughly irritated your local librarian, you will need to draft a good dispute letter. Even if you have some decent writing chops, this type of letter takes a unique method to be effective.

For example, the credit bureaus are constantly looking for those people trying do it yourself credit repair. They can easily spot the dispute letters written by amateurs. This can be a problem since credit bureaus are notorious for ignoring badly written dispute letters.

Even if you are a good writer, you probably are not going to enjoy standing in line at the post office. To ensure your dispute receives a proper investigation, you will need to mail the letter via United States Certified Mail.

Plus, mailing out a letter via certified receipt is an all consuming process. Wouldn’t you prefer to spend that time planning a vacation or relaxing during your lunch break at work?

Disputing your credit without the help of an attorney takes a great deal of organization. Assuming you are trying to remove more than a single bad credit item, you will have to stay on top of the progress of your case. To make sure the bureaus or creditors did not ignore your dispute, you will need to create a spreadsheet to track the results of each dispute and negotiation.

As you can see credit repair is not a fun experience. There are so many better and more efficient uses of your time. Plus, it is difficult to learn and apply complex legal statutes and case law to your unique credit experience.