Home Business Tips for Building Your Dream Home Despite Bad Credit

Tips for Building Your Dream Home Despite Bad Credit

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JACKSON, Miss. (WLBT) – Experts predict 2021 will be a boom year for home sales across the country. Historically low mortgage rates make the dream of home ownership a reality for many.

However, there are people who have been affected by the pandemic or poor financial choices. For those with a low credit rating, there are no longer programs available for them to qualify for.

This means that buying a home can often seem out of reach.

Bernard Bridges is President of the National Trustmark Bank of Hinds County. He says that while now is a great time to shop, it will be even more difficult for those with bad credit to get funding.

“So for someone who can say, ‘I won’t worry about it. I will pay as much as I can, when I can, as I can, because I don’t need a high credit rating for anything. “This is suicide. Absolute suicide, ”Bridges said.

Your credit score can determine whether banks will accept you.
Your credit score can determine whether banks will accept you.(WLBT)

Bridges says a credit score is a display of your past credit history – a score that tells a financial institution that you will pay your bill on time or how likely you are to default.

“We are in a real estate cycle that we would call a seller’s market. “There are more buyers than people selling their homes,” said Felix Walker.

Walker is the owner / broker of W. Real estate. He works with clients from a wide variety of financial backgrounds, but admits that it has been harder to find clients with lower credit ratings in recent months.

“It used to be 600 or 620,” Walker said. “But we saw, especially after the COVID hit, and I think it’s because a lot of banks are taking a little more risk as people lose their jobs or get fired, so they’ve now raised that credit rating limit. up to 640. However, there are still some programs that can only be obtained up to 580, but they are a little more difficult to qualify and complete. “

That’s when a loan consultant like Krisha Boone is called in to help.

“So I mostly help people fix their credit. So I dispute the negative points in their report, sometimes 50-60 requests that they didn’t know about, ”Boone said. “I dispute this, and I also help people improve their creditworthiness. When they come to me, we analyze their credit score. If it’s from a mortgage company, I force mortgage companies to send clients to me, realtors send clients to me, so we analyze first, see what is negative, and then dispute these issues. “

Boone is a Certified Loan Officer. She works with clients who need help getting their grades up to an acceptable range. She says student loans are one of the biggest loan problems.

Your credit score can determine whether banks will accept you.
Your credit score can determine whether banks will accept you.(WLBT)

“Consolidate these student loans,” she said. “Make them one and start some kind of repayment plan. This is the only way to get rid of the negativity in these reports. “

Once the credit problems are fixed, the path to buying a home will become clearer.

Rashida Walker, a realtor at W Real Estate Agency, says it is a pleasure to attract buyers with disabilities to home ownership.

“It’s a different story for someone who may have been going through difficult times,” Walker said. “And they literally just didn’t think they could buy a house and see them take over after they actually worked hard to get there. It is very nice; it looks like the greatest blessing ever. “

Stricter credit limits mean people really need to stay on top of their credit and work hard to pay their bills on time.

“I start where they are and starting where they are is a roadmap to get them where they want,” Walker said. “And so it is sometimes difficult, but if you stand next to the client and link him to the right lender, link him to the right loan officer, you will see the house at the end.”

Copyright 2021 WLBT. All rights reserved.

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