Home Buying in Batesville>Question Details

Yolanda, Home Buyer in Batesville, MS

how do i get a home mortgage loan in batesville ms with a credit score of 587?

Asked by Yolanda, Batesville, MS Tue Oct 25, 2011

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Yolanda,
Go to your local nonprofit housing group for credit counseling. They will review your credit report with you and let you know what you have done wrong (you have problems if you have a 587 score). They will let you know what you need to do to improve your score. Listen to them and do it. When you score is 640+ then think of buying a home.
0 votes Thank Flag Link Wed Oct 26, 2011
Good morning Yolanda,

It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you’ll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You’ll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.http://www.consumer-action.org/

Beware of anyone offering to “repair” your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE. http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran NMLS #40140
0 votes Thank Flag Link Wed Oct 26, 2011
I'd recommend you work (or continue to work) on your scores, as you'll have more loan options with a 620 or 640 credit score than with a 587.

Have you reviewed what is on your credit? What is bringing your scores down? Have you developed a plan on how you are going to improve your credit?
0 votes Thank Flag Link Wed Oct 26, 2011
Dear Yolanda, While there are lenders that can make you all kinds of deals, even with a low credit score, the question is, whether you can get a better deal if you have family that will either co-sign or go in with you, who have good credit. This is where a loan broker is very helpful, because they can sit down and discuss alternative ways of dealing with a problem, or perhaps help you set up a roadmap to improve your credit in a short time. I bet you will hear from some of them soon!! Good Luck! Terry Bell, Realtor, Santa Rosa, CA
0 votes Thank Flag Link Tue Oct 25, 2011
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