If you’ve never refinanced a New Jersey mortgage after bankruptcy, you probably don’t know much about the process. Taking the time to educate yourself on how the lending industry works will be to your advantage. To help you, here are three things in particular you may not know about refinancing a mortgage in New Jersey after bankruptcy:
The lenders will be after you
After filing for bankruptcy, you may be surprised when a host of lenders spring out of the woodwork ready to offer you whatever loan you’re looking for. You may have already received phone calls, emails, or articles in the mail advertising various loan services. While it may be tempting to contact one of these companies, you’re better off applying to your own lender rather than going to a lender who applied to you. In particular, you’ll want to stay away from anyone who asks for credit card information or bank account numbers during an initial inquiry.
New Jersey has laws to protect you
To protect borrowers interested in refinancing mortgages after bankruptcy, the state recently created the New Jersey Homeownership Security Act. This law prohibits predatory lending practices and focuses specifically on protecting the borrower’s wealth. Even with this law in place, borrowers should pay attention to any warning signs that may arise when working with a lender to refinance a New Jersey mortgage after bankruptcy.
You need to be a smart shopper
Loan rates, fees, and terms are different wherever you go. That’s why it’s imperative that you be a smart shopper when shopping for a New Jersey mortgage refinance after bankruptcy. Without shopping around before applying for a loan, you’ll have no idea whether or not you’re getting the best loan available.