Post # 1
Hello there! Have been a long time lurker but this will be my 1st post! Just ened some general advice on obtaining a mortgage. My husband and I have been married for almost a year and want to so desperately buy a house. I have pretty good credit (FICO:780) and my husband…well….not that great (About 450s).
How does it work for obtaining a mortage id your SO’s score isnt that great? He isn’t bad with money, he unfortunately has had to help family, (we all know family and money dont mix) and at the time he was just being a helpful nephew and put a car under his name that his uncle drives. Of course, his uncle doesnt make payments on time (sometimes my husband will just pay it because he doesn’t want it to affect his score any worse than what it already is) and it falls back under my husband’s score (ugh). Thank God this problem is almost over with because the car is almost paid off, probably 3 more months.
If we can’t obtain a mortgage now because of his credit, do you know how long that usually takes for his score to get up to maybe the mid 600s? This stupid car thing is the only thing holding him back. EVERYTHING else he has up to date. I don’t want to wait another 3-5 years to buy a house when I feel like we’re wasting money on rent. Do you think it is possible in about 2 years?
Thank if you have read up until now…. any advice is greatly appreciated!
Post # 3
We recently went to get pre-approved for a mortgage and they used the middle score of the person with the lowest credit. In your case, if you had scores of 780, 766, and 777, and your Darling Husband had scores of 460, 480, and 490, they would base their decision on the 480. I’m completely guessing, but I’m thinking the only way you could get a loan would be to have the mortgage soley in your name (assuming your income is high enough to qualify without his – otherwise you’d probably have to wait for him to improve his credit). Sorry, that stinks!
As far as raising his credit, I don’t know how long it will take…. hopefully someone else can answer that. I’d just suggest he pay off any balances he is carrying, pay everything on time, and avoid closing any cards.
Post # 4
Have you considered putting the mortgage just in your name? You can always refinance later when his credit is better to add him.
Post # 5
Since his credit is so bad, I would consider getting the loan and deed in your name only for now. His credit is below subprime so he probably wouldn’t get anything at all.
It will probably take a few years for that loan to stop affecting his credit. Does he have any other credit that he uses responsibly like a credit card? From now on, he should pay the bill and have his uncle pay him back to avoid any more negatives on his credit.
Post # 6
- Wedding: July 2012 - The Gables Inn, Santa Rosa, CA
It always stinks when doing something good for someone backfires like that…
Unfortunately, you’re somewhat stuck for the time being– unless you can qualify on your own, in which case, I’d go that route, then add him to the mortgage in a few years when his credit improves (should be about 3 years). Or, save for the next few years, and wait for his score to bounce back.
Post # 7
I just got my pre-approval a couple weeks ago….I had to apply for it with just my information as my husband is a graduate student getting paid through government fellowships which DONT count as income (and his salary is 1/3 of our total household income)!!! So together, our student loan debt and just my salary looked terrible so we decided that I would just apply for it on my own. If you can, I would recommend doing that too. Improving a credit score takes quite a bit of time…
Post # 8
Our mortgage is under DH’s name only, but the deed is in both our names. Like others have said, try getting the mortgage in just your name. There’s no reason why his name can’t go on the deed if you want it though.
Post # 9
Thanks ladies! We actually spoke with someone from Wells Fargo. You can usually change your credit score within 6-12 months but it wont reflect on your credit score for up to 2 -3 years. They mentioned they can do a rapid re-score (which only lenders are allowed to do) to see how your credit score is instead of waiting 2-3 years length of time. This allows lenders to see your true score without the wait. From what the person at Wells Fargo said, they can also help people obtain a mortgage with not-so great credit as long as they are making the income. So we’ll see. If not, we will have to obtain it in my name and put both of our names on the deed. We discussed that also. Thanks ladies!!!
Also, have any of you worked with Wells Fargo before? How are they? Thanks.
Post # 10
@MrsRNF: Our mortgage is through Wells Fargo and we had no issues with them. The underwriter we worked with was REALLY nitpicky, so she asked for all kinds of random stuff. It got annoying, but wasn’t really a HUGE deal in the grand scheme of things.
Post # 12
@BoiledPNut: Thank you! Do you mind if I ask what kind of random stuff they asked for? I can’t think of them asking anything off the wall besides income verification, IDs, and credit history? Thanks.
@mrs.folks: ??? Lol
Post # 13
Not sure where you live, but here is something to think about… we are in Washington state, which is a common law state. What this means is that as soon as you get married, you have NO CHOICE but to consider both peoples credit when you buy a house. And when you get married, the property automatically becomes ½ theirs. This does NOT mean the debt is ½ theirs. So we bought the house 1 month before we got married and put it in my name only. Now that we are married, if we got a divorce, I would have the whole debt and he would have half the house. But with my good credit, and his not good credit, it was the only way to get a house now instead of in “how ever many years” it will take to fix his credit.
Post # 14
This is similar to my situation. We’re not married yet (22days!) but the house will be in my name and we had to settle for what we could get with just my income. My score was good, FI’s not so good, same story, family money issues
Post # 15
- Wedding: October 2011 - Bed & Breakfast
@MrsRNF: When you get to underwriting (which comes AFTER you have a solid contract and are going for final financing approval in order to get that check), they will want to know the source of every friggin deposit into your account, if it’s not obviously a direct deposit from your employer. We got around this by only telling them about 1 account where all of the downpayment and closing cost money was hanging out. That way we could do whatever we wanted with our other 2 accounts and the underwriters would never need to see any of that activity. The downpayment account stayed nice and steady with our direct deposits, and we only had to explain a single deposit (an earnest money refund from a failed deal). That made our underwriting process sooo much easier than I thought it would be. 🙂 Oh, and they will also re-check your credit scores and re-verify your employment when you are in underwriting. They may also ask for updated paystubs to prove that your income hasn’t dropped since you were pre-approved.
Post # 16
lovekiss is right. Underwriting is a pain. They wanted an explanation of every deposit. I had a few go into our joint account from my personal account (simple money transfer) and because of that, they wanted my bank statements for 2 months, even though I’m not on the loan. It was really annoying. Also, anything we spent over around $100 had to be explained.