Home Loans?

Question

My fiancee soon to be husband is about to purchase a home he has been approved for 90,000 on his own we are wondering if by adding me if it would help us qualify for more money or a better loan i make around 27000 a year and have a 650 truck payment as my only debt my credit score is 550.

Answer 1

My wife and I are currently in the process of buying another home. Her credit score is high and mine is not. Because of my being on the application originally we were denied. However, after shopping around for a lender, we found a place that did what is called a "stated income" loan. Meaning that my wife was the only borrower but stated what the total house hold income was. Takes a little more leg work to accomplish this but it might help.

Answer 2

You can be on the loan application. The thing to consider is this. If you make more than he does, than you will be first and the lender will go off your credit score. Is the 550 you middle score. Lenders look at the middle score to qualify a person. 580 mid score can get 100 percent financing. If his income is higher, and he has the higher credit - awsome - use both of you. OR another way is if you are on his checking account. Than you can go full doc, (lender term) and use 12 month bank statements, and he can be first, and you second. Talk with your broker (ok) he/she should help you out. If not find another broker, one that is willing to help work with you.

Other things to consider:
When you Decide to buy, decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok -

It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far??

Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.


Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out.

Answer 3

With a credit score of 550, you will probably cause the rate to be higher. Even though it is better the loan to be in his name, you should be on the title of the home.

Remember this your first home, so you will have to make a lot of compromises to find something affordable. Once you have your credit cleaned-up if you need to move-up(bigger, better location or better schools), you will be in a situation to do it with both of you on the loan.

I imagine the rate on your truck loan is high. You want to pay that off as quickly as possible.

Answer 4

As housing market continues to slump, if you don't plan to delay your plan, please interview several and pick a good realtor or agent.

Bad ones will talk you into buying the largest property at your credit limit. Good ones will find you a good deal (Sellers are offering discount and incentives now).

Try to stay away from Adjustable Mortgage, because 30 year fix mortgage rate is very low right now. There is no reason to use Adjustable loans except fatter commission for loan agents.

Interests only loans are not good iether. Mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn't add to the equity to your house. It simply disappear as your pay it. If you want to use interests only loans, might as well rent, especially during market downturn, because housing price won't appreciate.

Finally, for tax benefits, talk to your CPA or tax accountant. Do not consult finance with realtors or agents. They get commissions when you sign the check!

Good luck!

http://biz.yahoo.com/brn/060909/19463.html

http://money.cnn.com/2006/09/08/real_estate/caught_in_the_bubble/index.htm?postversion=2006090814
http://money.cnn.com/2006/09/05/real_estate/Ofheo_home_prices/index.htm?postversion=2006090514

Answer 5

With a credit score of 550 I doubt you are going to be doing him any favors. This is the same thing that happened to me and my hubby when we were buying our first house. My credit score was low (Due to being married before to a spendaholic and having too much debt) So my husband got approved for $200,000. He got the house on his own and then added me to it later (title and loan)

Good Luck! Its a big step buying your first house.

Answer 6

definitely shop around. adding you as a cosigner certainly cant hurt.
but your credit score is a bit low. so i wonder if that might drag down the overall rating.

try http://www.savingslife.com

to get a few other quotes to get a better feel for the mortgage landscape. it cant hurt. and your credit wont be run.

Answer 7

particular it is accessible staring on the fairness place on your place. in case you circulate over 80% of the non-public loan to value, then you would be required to have PMI. PMI now ought to be tax deductible reckoning on how plenty you're making. you will possibly ought to work out no rely if that's sensible to circulate over 80%. solid success! CA Lender

Answer 8

Probably not a "better" loan, but with your added income, assuming it's regular and stable, it may help to qualify you for a larger loan.

Congratulations and good luck!

Answer 9

Get a quote for your home loan at http://www.nationwidebillrelief.com/homepurchase.html and do the application jointly this will give you an idea on how much you may save.

Answer 10

try to build up your credit score 1st- it might actually hurt him opposed to helping..