Should these two people (details inside) buy a house before marriage or wait until after they are married?

Question

My credit score is 730, but, since I teach for an online college, my income is only around 22,000/year. My fiancée’s credit score is low (we've yet to check it; but I'm doing that this week before we meet with a financial advisor as part of our pre-marriage counseling). I would guess it is in the 500s. My fiancée makes about 55,000 a year. We are both in our mid-twenties.

We are recently engaged with the date set for October of 2008. I would like to wait to buy a house until after we are married, but I am worried about what will happen to our rates and credit scores after we get married.

Should I try to buy a house before we get married, or would it be okay to wait? How much of a financial or rate hit would we take if we wait? Would it help if we waited and my father (who has a high credit score and income) cosigned?

Any advice is appreciated!

Answer 1

There are several issues here.

First of all, getting married does not combine your credit histories. Your credit is still your credit and his credit is still his credit.

The only way your histories have any influence on each other is through joint accounts. If you open a joint account and he continues his current behavior (which can't be good if he's in the 500's) it could affect your good credit.

I would wait until after the marriage to buy a house. Interest rates are currently low and probably won't skyrocket over the next 12-18 months. You can use this time to straighten out your finacees credit. Get him up to date on everything. You really need to understand your debt positions before you can even consider buying a house.

Your father shouldn't co-sign a thing unless is willing and able to make the mortgage payments if you two don't. It isn't something he should undertake lightly. Anyway, your combined credit will be good enough by that point to get a great rate.

Answer 2

If you wait, it will give you time to improve your fiance's credit. These 10 months are enough time to see good improvement on his scores.

You shouldn't need your father to co-sign. It might secure you a better rate, but see what you are quoted on your own first.

It is my understanding that getting married does not merge your scores. Your score will still be a separate entity.

Some people will post in here that you should wait to buy until you get married for moral reasons. I have no objections to you buying a home before you get married, but if you do, make sure you have a legally binding agreement as to the terms of the transaction. This is much easier and cheaper while everyone is in love than to deal with if there are problems down the road or if something grave should happen to one of you.

Congratulations on your engagement and good luck to you.

Answer 3

It is a "buyers market" right now in most parts of the U.S.

Look around, you may find a real bargain.