It used to be that people with poor credit couldn’t even think about getting a first mortgage loan. No mortgage company would even consider giving a loan to anyone in such a state. Even those who already owned a home couldn’t get a mortgage refinance loan. With increasing competition in the market today, there are more options for those with bad credit.

A smart move is to consult with a mortgage advisor who specializes in people with low credit scores. There are fewer options available to people in this position, but an advisor is often aware of possibilities the average lender may not be aware of.

Know what information the mortgage company will use to when coming to a decision. Take advantage of your right to obtain a free copy of your credit report annually and avoid companies that offer “free” subscriptions with their service programs. Compare your most recent credit report to past ones. This will allow you to know if your credit is improving, stabilizing or deteriorating.

Bear in mind that just because your credit rating is low doesn’t take away your right to dispute things on your credit report that might not be accurate. Mistakes happen on credit reports every day and by simply disputing those errors, your credit rating will often increase. You should also know that some things on your credit report will no longer show up after a certain period of time. Even bankruptcies will disappear after a few years.

When speaking with a low credit mortgage advisor it is important to be open and honest about your financial situation. Bad credit mortgage refinancing is a tricky proposition. Your advisor will be better able to help you if they know exactly where you stand. You are at risk of being denied the best possible mortgage refinance loan and an advisor can help.

Talk to your mortgage advisor and discuss all of the options. If you don’t understand something, ask them to clarify. Bad credit mortgage refinancing can be very confusing and you should never act like you understand something if you don’t! You always have the right to not sign on the dotted line.

Your individual credit situation will of course dictate your options to a certain extent, but bad credit doesn’t mean you are without choices. Your interest rate is going to be higher than someone with good credit, but I’m sure you expected as much. Fixed rate mortgage refinancing loans will be harder to get, but with adjustable rate mortgages (also called ARM) and hybrids you will find an option that works in your situation.

Final word: Don’t do anything you aren’t comfortable with. Trust your instincts and always read the fine print. If you are still confused, ask a trusted friend or family member to have a look and offer their opinion. You don’t have to make the decision alone.