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Mistakes You Can’t Afford to Make When Refinancing a Mortgage After Bankruptcy

First time homebuyers commonly make mistakes when they get their first mortgage. Perhaps they didn’t carefully research rates or perhaps they went with the wrong lender. You may have even made a mistake or two yourself. But when it comes to refinancing a mortgage, especially refinancing after bankruptcy, you can’t afford to make any mistakes. If you do, your refinance will be nothing more than a waste of time and effort. To help you out, here are two mistakes in particular that you can’t afford to make when refinancing your Louisiana mortgage after bankruptcy:

Not Getting the Best Rate
Not getting the best rate on your Louisiana mortgage refinance after bankruptcy is a huge mistake. The higher your rate is, the higher your payment will be. If your rate is too high, you could end up paying much more for your house than it will ever be worth. Take time to make comparisons and shop around for the best rate.

You might also want to find out what average rates are on Louisiana refinance loans. This will give you a basis for comparison. A search of the web showed current rates to be 5.62 percent on 30-year Louisiana mortgage refinances.

Not Reviewing Loan Documents
When refinancing a Louisiana mortgage after bankruptcy, it is imperative that you review all of your loan documents very carefully prior to signing. Look for hidden balloon payments, prepayment penalties, and other things that you may not be aware off. You will also want to carefully check any fees that are being charged to you at closing. Make sure they match up with your good faith estimate and see to it that you aren’t being overcharged or charged double for any of the items.