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Applying for a Mortgage When Married


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i have a credit score around 650 my DW has a credit score around 550 the mortgage lender said that since we have to use both incomes to quailify for the 450.000 dollar mortgage he would have to use the lowest credit score which would be my DW is this true ...i wouldn't quailify for the mortgage on my income alone

thank you

would this work the same way when applying for a joint credit card???

thanks again

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That isn't what I heard recently. I heard that they "blend" the credit scores and settle "somewhere in between..." if you wouldn't qualify without her income, you may want to consider doing a pre-approval process whereby a lender helps you to understand how much house you truly can afford. Keep in mind, if they use her FICO and it's lower--you'll have a crappy interest rate and you'll pay through the nose. Be careful.

As far as applying for joint credit, I know they use different qualifying factors.

Elyse

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i...i wouldn't quailify for the mortgage on my income alone

This is just my two cents; however, I believe it makes good sense to only apply for a mortgage in the amount of the spouse with the highest income. That way, if one of the incomes suddenly disappears then you can still make the mortgate payment.
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i have a credit score around 650 my DW has a credit score around 550 the mortgage lender said that since we have to use both incomes to quailify for the 450.000 dollar mortgage he would have to use the lowest credit score which would be my DW is this true

Is your proposed mortgage payment similar to your current housing expense?

If so, then you might want to look into a No Ratio.

The No Ratio program does not calculate a debt ratio.

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i have a credit score around 650 my DW has a credit score around 550 the mortgage lender said that since we have to use both incomes to quailify for the 450.000 dollar mortgage he would have to use the lowest credit score which would be my DW is this true ...i wouldn't quailify for the mortgage on my income alone

thank you

would this work the same way when applying for a joint credit card???

thanks again

I would suggest you look up a member of this board by the name of firstsource. He isi n the mortgage business and has helped many people here with complex problems. I think it would be a good place to get good information. Good luck!

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Yes, it's true, most programs take your middle score and your DW's middle score, then use the lower of those two scores. If you wait and put some more money down to lower the mortgage to the conforming amount ($417,000) you may have a few more options.

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Most of the time, the lender will use the credit score of the person which provides the highest income.

In the event that DW is the higher income, then there are other options:

No ratio would be good provided your current job has a job title which could possibly substantiate the income required for the loan.

There are also stated income loans and bank statement loans (these are useful when DW deposits his paycheck into your account), and a few other options.

P.S. Charles is VERY GOOD in this area of the mortgage business.

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