If you are a homeowner with credit problems, refinancing your mortgage can be an intimidating task. There are steps you can take to improve your credit score prior to refinancing your mortgage; steps that can save you thousands of dollars on your new mortgage. Here are tips to help clean up your credit prior to refinancing your mortgage.

When you apply to refinance your mortgage with past credit problems, you need to be ready to discuss your past credit history openly with the new mortgage lender. Having poor credit will not prevent you from refinancing your mortgage; it simply means you may have to pay more for the financing. It is important to note that may have to pay more. if you do your homework, clean up your credit, and shop for the best mortgage lender, you can easily find mortgage offers with rates more competitive than homeowners with good credit that neglected to do their homework.

The first thing you need to do before anything else is to review your credit records for accuracy. You will need to request copies of your credit records from each of the three credit agencies: Equifax, Experian, and Trans Union. If you find errors on these credit reports you will need to dispute them with each credit agency.

If your credit rating is really bad, consider seeking help from a third party, such as Consumer Credit Counseling. Credit counseling services can help negotiate with creditors to allow you to pay down your debts without filing for bankruptcy. If credit counseling is not an option, filing for bankruptcy may be your last resort.

Once your debts are under control you need to focus on making all of your payments on time and rebuilding your credit. You want a minimum of six months worth of on time payments on your record prior to applying for a mortgage. Dont procrastinate when it comes to making your payments; a large portion of your credit score is based on your history of on time payments. The better your credit score the better your new mortgage will be.

To learn more about improving your credit score and qualifying for the best mortgage, register for a free mortgage guidebook.

Louie Latour

Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of ?Five Things You Need to Know before Refinancing Your Mortgage,? which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit RefiAdvisor.com.