i earn a high salary but have poor credit, my girlfriend, good credit but low salary. How should we buy a home

Question

i make around 80000 a year while my girlfriend makes around 20000. She has good credit but my score is low. If we marry next year what are our options as far as the best way to obtain a mortgage?

Answer 1

Wow... it amazes me the advice that people give. As a financial specialist in the mortgage and credit fields, let me give you some free advice on how to proceed over the next year or so.

Before I do, understand that regardless of your marital status, lenders use the credit score of the primary wage earner to calculate the programs that can be used. For example, if your future wife lost her $20k a year job, you could still probably get by on your $80k. However, your wife will probably not be able to handle the bills if your income goes away. So your credit must improve... cannot count on her to make it happen.

First, in regards to old credit. Unless you have PROOF that the account was not yours or was indeed paid off on time, DO NOT CHALLENGE OLD DEBTS! Challenging old debts with no proof is the technique used by "repair" scam artists. Unless you have proof, this will do no good. (The original creditor has proof that you signed the application, etc.) WHAT YOU SHOULD DO is this... since you are looking at a year or so down the road, call the old debts up and make settlements on the accounts. Make sure before you pay them anything that you have proof of the agreement in your hand. There is a good chance that the creditor will not tell the credit bureaus that you paid them and you will have to prove the settlement was agreed and paid. With an agreement in hand prior to payment, and proof of payment, now you can get this updated yourself. Your scores will suffer initially since the old negative credit will have a new date of activity, but with a year to go, it won't be long term.

Second, make your credit better by creating POSITIVE credit on your reports. This is easy... One revolving account (a credit card) and one installment account (NOT A FINANCE COMPANY) should do the trick. With the credit card, make a small charge each month ($20-30 of gas) and then pay it off each month when the bill arrives. With the installment loan, seek out a local credit union and open a secured loan with them that is automatically drafted from savings. Then put the loan money into the savings so the loan pays itself back! A 12 to 24 month terms should work well for your situation.

Finally, open a joint account with the two of you and make as many deposits into that account as possible. Some alternative lenders will use bank statements to calculate your income. This way they will use whoever's score is the highest. (Avoid job related direct deposits as they give away how much each of you make, and make actual deposits, not transfers as many lenders will not count transfers.)

In less than a year your credit will be well recovered and on your way to a great mortgage program that works for you. I would advise speaking to a broker when it is time as they usually have access to hundreds of lender programs, where your big bank has 5-10 programs.
For a 60-90 window, please check out the credit builder program at DropRent.com/Credit

Good luck!

Answer 2

I would say that the down payment will the biggest thing that they will require you to have, more so than the average couple with good credit. You may be required to have 20-25% down. I don't know the circumstances of your credit, if it involves bankruptcy that has been discharged, or any repossessions, or charge offs (accounts that were never paid over a time period-written off for later collections-if so pay them off)-You can have on your credit report a statement as to why you fell behind during that time period, perhaps you were in a layoff, etc. Mention what you have done to make good on the debts. As far as your fiancee, its great that she has good credit, but all lenders will look at job stability, as well as income and of course credit, if her credit has been good with at least a sizable loan such as auto loan for 12 months, and not just a couple of small charge cards, you should qualify just fine. Do try to clear up what you can now before you apply in your credit reports, and do not apply for any major purchases, credit cards, as those show as credit inquires and stay on your report for 2 years (it shows lenders if some are credit happy for multiple credit cards)

Answer 3

Use the upcoming year to improve your credit score. Order a credit report from the three major agencies and challenge everything negative on it. Get credit cards from your bank, (secured is best) and make regular monthly payments. A good credit history for one year will overshadow the bad. Once married, your wife's credit could be used with your income to improve the debt to income ratio. However, it is best for you to have good credit as well as your fiance.

Answer 4

if you get married, you will probably have no problem obtaining a loan, her good credit will reflect on you and your salary will help support her, just go to the bank, you should have no problem

Answer 5

you can investigate the link on my profile
in its text it has such quotes as
"created to help those who have bad credit find the credit they deserve. Personal loans, business loans, credit cards and mortgages are all within your reach with us! No matter how bad your credit situation "

Answer 6

Money buys everything!!! Make sure you save a lot for a substantial downpayment, and pay your debt of. You will make up by the time you get married and regain your credibility