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Less than perfect credit doesn't throw you out of the mortgage refinancing game completely but it may restrict your loan options. By doing an appropriate amount of research both on your own and with a mortgage broker or a representative with your bank, you can evaluate your refinancing choices and decide on the best course of action. Being prepared and knowledgeable puts you in the best position in considering a suitable refinancing option.

To begin, it's best to assess your personal situation and the reasons for refinancing. Are you looking to refinance from an adjustable rate mortgage (ARM) to a fixed term? Perhaps you're wanting to take advantage of some of your home's equity for either the purposes of consolidating credit debt or putting cash away for another investment. Another possibility could be refinancing in order to reduce your current mortgages' interest rate. In some cases, you may be able to do all of the above but it's important to weigh the risks associated with refinancing and what will essentially become a new mortgage loan, regardless of your credit circumstances.
The majority of your own research will consist of taking a look at your complete credit report, not just your scores. If possible, try and get a tri-merged credit report which will show your credit profile as examined by all three credit reporting bureaus, Experian, Transunion, and Equifax. Compared side by side, the bureaus should be reporting most of the same information in regards to balances, payments, and creditors, but the credit score determined by each bureau will most likely be different. Of the three scores reported, the middle of the three scores is what the mortgage lender will deem representative of your loan. But more about that later. What's important to consider in this stage of your research is how much outstanding debt you may have and to resolve any inconsistencies or wrong information reported by any of the bureaus. Any open negative credit, such as collection accounts, can most likely be factored into your loan as accounts to be paid off with your loan proceeds as they will have to be satisfied prior to closing. But bankruptcies are one of the key factors in determining available loan options. Typically, your bankruptcy should be discharged for at least three years from the date of your refinancing loan application but this guideline varies by mortgage lender and individual loan programs. Some lenders will allow for less than three years while others may not

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