Massachusetts has state laws that prevent predatory lending practices, but when refinancing after a bankruptcy, it can still happen.
Everyone makes mistakes, but when it comes to refinancing after bankruptcy, mistakes can get expensive. To make sure you don’t cost yourself any unnecessary hard earned money, it’s better to learn from some of the errors that other people have made. Here are some of the most common mistakes associated with refinancing a Massachusetts mortgage after bankruptcy:
Not Taking Steps to Repair Credit Before Refinancing
With a low credit score, you are guaranteed to pay more for your Massachusetts mortgage refinance after bankruptcy. If you can afford to wait for a few months to take time to repair your credit, you should. You will qualify for much better rates and terms. A lower rate could save you thousands of dollars over the life of your loan.
Choosing the Wrong Lender
Your post-bankruptcy refinance is only as good as the lender you choose to work with. If you get bad rates, bad terms, and bad service, you could pay for it for years to come. Always take time to find the right lender to work with. If you catch a few small ways that the lender has tried to cheat you. If you continue to work with a lender that has been dishonest, you may find after closing that the lender has cheated you more than you thought.
Not Negotiating for Cheaper Closing Costs
Closing costs for Massachusetts refinance loans average $3,143. If you want to pay less than that when closing on your Massachusetts mortgage refinance, you should try to negotiate with your lender to see if you can have certain fees waived. Lenders don’t usually advertise the fact that they will negotiate when it comes to closing costs, but almost all of them will if the borrower brings it up.