Me and My fiance are about to buy a home togother. My credit score is good ( around 700) . However, she lacks credti history and had some problems when she was a little younger....so her credit is around 600 I guess..
If we apply for the mortgage toghther can they just put my name on the loan if it helps the rate? The problem is that I could never afford the mortgage on my own without her income ( which is about the same as mine).And of course she wants her name on the house deed as well.
What do banks do in these cases?
2007-02-16 01:25:24 · 10 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
It should not be a problem with both of you on the mortgage. You are better of that way anyway. Just make shure you are the one who makes shure it gets paid on time.
2007-02-16 01:36:32 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Well, to start if her credit score is 600 and yours is 700 you very well might be approved for most loans right off the bat. 600 is not horrible, its just not great. They may weight your credit score more heavily, alot of banks do that. Now if her score is 500, you may have issues. But there are alot of ways around it.
Im not sure of all the technical terms bank use for this, but they have ways to just put your name on the mortgage, but still factor the combined income while putting both your names on the house.
Which means YOU are legally responsible for the entire mortgage if anything happens, so watch out it can be risky.
2007-02-16 01:28:21 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Your best bet would be to talk to a lender directly. My husband and I are about to close on a house we're purchasing. When we started this process, we had this credit-monitoring thing that showed us our credit score each month. Come to find out, mine was much lower, and his was much higher than this credit monitoring program was telling us.
When you apply for a mortgage, the lender will take your credit reports and scores from all 3 major credit reporting agencies (TransUnion, Equifax, and Experian). They then take the credit score in the middle (not the average, just the middle one). So if your scores come back at 733, 709, and 753, they'll take the 709 score.
The bank will be able to give you options for the best type of mortgage that fits your situation. We were given the option to have the mortgage applied for in one name, and then the other person added later to the deed. But they will give you options for your specific situation and area.
2007-02-16 02:55:42 · answer #3 · answered by aj1020 2 · 0⤊ 0⤋
There's a good chance that your application will be approved with the two of you together, unless she has large outstanding collections or something that's still out there like that.
There's plenty of alternative products that would qualify you based on the primary earner's score, so hopefully you're making just a little more than her?
If you were my client, I'd try to run it together first. If that didn't work, I'd look at primary score products. In a very last resort, I'd consider a no ratio product in just your name. She could still be on title even if she's not on the financing. And when you get married, most states give her marital rights anyway.
2007-02-16 05:04:53 · answer #4 · answered by Yanswersmonitorsarenazis 5 · 0⤊ 0⤋
Sn general, FNMA (Fannie Mae, one of the major mortgage securities who establish lending guidelines) has more stringent guidelines for underwriting and approving loans where the lowest scoring borrower has a middle credit score of less than 620. And that is how the qualifying credit score is determined, by the lowest scoring borrower's middle score.
For your fiance's income to be used in qualifying, she must be on the loan with you.
A great deal will be determined by how much you have to put down on the house as lending is a risk perception activity. The less you put down, the tighter the approval guidelines.
Because you are so Strong credit wise, it may be OK but it is hard for me to tell without more information.
Feel free to email me
2007-02-16 03:13:15 · answer #5 · answered by Anonymous · 0⤊ 0⤋
They would probably do an average of the two. You should still be able to get a reasonable interest rate with a score of 650. The problems really occur when your score falls below 620.
2007-02-16 01:29:26 · answer #6 · answered by Anonymous · 0⤊ 0⤋
a co-signer on the load without attendent sources rights has in trouble-free terms one actual, to pay the loan. till you're also a co-proprietor of the sources (through deed) you do not have any rights in any respect to the sources, in trouble-free terms the debt.
2016-12-04 06:13:07 · answer #7 · answered by ? 4 · 0⤊ 0⤋
If your income can't cover the mortgage you would not be accepted. Have to work it through with both names.
2007-02-16 01:28:36 · answer #8 · answered by vegas_iwish 5 · 0⤊ 0⤋
yes, that will help out greatly... except now YOU have all the liability and she gets all the benefit. Apply for a no doc, or no ratio loan so you can qualify.
2007-02-16 04:23:55 · answer #9 · answered by Anonymous · 0⤊ 0⤋
yes you can get the loan but in your name maybe hers too and a good steady job good luck
2007-02-16 16:39:52 · answer #10 · answered by pattibcacl 6 · 0⤊ 0⤋