His credit is good and my credit is not so good. should I just let the morgage be under his name and add my name in later, or the two income would be better? if I add my name in later would that affect the morgage rate or anything?
2007-09-12 08:42:57 · 10 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
I don't understand what you mean by your scores are negative. I've never heard of that. The lenders use the score of the primary wage earner. The best way to figure out how to proceed is to complete a loan application. That way you'll know if your income is needed in order to qualify for the loan. If you are not on the loan you can be put on Title now, and if you want, when and if you refinance and you qualify to be on the loan, you can put yourself on then. Good luck
2007-09-12 08:50:29 · answer #1 · answered by Brain 4 · 0⤊ 0⤋
It depends on how much money you both make. If the mortgage is in his name alone, you can't use your income - meaning you won't qualify for as much of a house.
However, your credit score will definitely cause issues.
Leave it in his name and have your name added on the title - it's something like a joint survivorship, I think that's what it's called anyway. That's what I did when I bought a house with someone who had lousy credit.
I'd really suggest focusing on cleaning up your credit BEFORE buying a house though, if your name is attached in any way to this house, your creditors can possibly attach a lein to your house and force foreclosure.
We ALL want to own a home, but having bad credit is a sure way to wind up foreclosing in a few years. It's happening to good people every day, and it's very unfortunate.
Clean up your credit, save money for a down payment, THEN get married and buy a house. You'll have less financial worries and less future marital problems. Just some helpful advice I wish someone had given me before buying a home.
2007-09-12 08:54:03 · answer #2 · answered by Roland'sMommy 6 · 0⤊ 0⤋
If you buy together they will use both credit scores and normally take the lower. The issue is that she may not have the income to support the loan.
If she does apply and gets the loan, you can't just add your name to the mortgage, it's her mortgage. You can add your name to the house title, which would be stupid of her since she has 100% responsibility for the loan. She might be able to get a 5 year loan, interest only with no points and when the time has past your credit might be built up enough to do it together.
2007-09-12 08:48:26 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Buying property before marriage is risky, make sure you both see an attorney to cover your butts if a break up occurs.
You and your fiance may qualify for an FHA guaranteed loan if you have money down. Here is a link to the government's website that can help with your specific situation
http://www.hud.gov/buying/index.cfm
The days of iffy credit and zero down are gone. Do you guys have 20% saved for the down payment (plus closing costs which can be as much as 5% more)? With HUD you may not need the full 20% check out their FAQ's to be for sure.
As for the adding to the mortgage/title, at that time you would have to requalify the loan, it may or may not be a good idea, only time will tell. If you get married you can always deal with this issue through an estate attorney.
2007-09-12 08:56:09 · answer #4 · answered by Gem 7 · 0⤊ 0⤋
It depends on the cost of the house. If your fiance is able to pay the mortgage payments with his income only, then you can just put his name on the house. However, the mortgage payment can only equal about 28% of his gross monthly earnings. I would suggest that you put his name on the house and co-sign your name on it. By adding both names, it increases the monthly income, but it would increase the interest rate to be a little higher because you have bad credit. It would cost you probably a couple thousand dollars to add your name into the house if you only plan to put your fiance's name now. This is for fees to change all documents on the house.
2007-09-12 09:03:23 · answer #5 · answered by Mrs Apple 6 · 0⤊ 0⤋
I think you should consider working on your credit before you consider buying. The mortgage industry has changed a lot folks, and it is again to your advantage to be presentable on paper. It will save you a lot of money by doing it the right way. Just ask many people that are going through foreclosure right now.
2007-09-12 09:00:50 · answer #6 · answered by bpl 5 · 0⤊ 0⤋
Not sure about your location, but in some states, your deed can reflect both names and a Joint Ownership (if you are legally married.)
Joint Ownership allows both parties to appear on the deed, and gives both parties "Right of Survivorship". In other words, both parties are recorded on the deed, and if one party passes away, the other party obtains rights to the property.
However, if his credit is positive, and yours is so low as to interfere with the ability to get a loan, I recommend he obtain the loan, but you require (especially if you have a $$ investment in the property) joint ownership with right of survivorship.
You may want to speak briefly with a Real Estate attorney to see what is legal and recommended in your State and for your situation. Your rights will vary in some cases depending on your marital status at closing.
You also need to speak to your lending institution to see what he alone or you two together are qualified to spend based on your credit score/debt to income ratio/past credit issues/downpayment percentage, etc.... This will give him (or both of you) the ability to be prequalified, which will speed the entire process.
Best of luck
2007-09-12 08:53:47 · answer #7 · answered by talldude 3 · 0⤊ 0⤋
really depends if you're puttin money down or not.
look into a FHA mortgage. they allow low scores.
two incomes is always better than one.
adding your name MAY affect the rate because they will use the lower score....but not on government loans
2007-09-12 08:57:11 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Just wanted to add, don't waste your time contacting the scumbag spammers who post their "I can help!" garbage here. Most of them are scammers working out of Nigeria or Latvia or some other God-forsaken hellhole. Even if they're not, they're not bright enough to read the CG and TOS so would you REALLY want to trust them with a major item like a mortgage??
2007-09-12 13:11:19 · answer #9 · answered by Bostonian In MO 7 · 0⤊ 1⤋
okay here are the options he has it solely in his name and you get approved for less money or you work out at rent-to-own or a seller fiancing option because a seller can be more lienate then a bank when it comes to credit requirment
2007-09-12 08:49:36 · answer #10 · answered by sarah W 4 · 0⤊ 0⤋