(Closed) So upset/credit issues (long)

posted 6 years ago in Legal
Post # 3
Member
928 posts
Busy bee
  • Wedding: August 2011

@anonynony:  Sorry this has been such a frustrating process for you. Darling Husband and I are in the process of buying a home and we’ve had similar issues. We have a co-signer, it’s not that big of a deal. Our credit scores are pretty good, but my student loans are killing my debt ratio. Our mortgage broker actually advised us against paying down a substantial chunk of my student loans for two reasons; it’s not bad debt to have per se and it was better to have liquid cash than pay down the debt. Especially since he doesn’t have acredit history, paying off the student loans each month would help bUild that.

 
It also depends in your mortgage broker. Darling Husband is a real estate broker so he sees this a lot. Mortgage approval tends to be cumulative – they’re going to look at the whole picture; how much cash you have, income history and gross credit scores. If you guys have are putting down a large down payment in comparison to the value of the property you should be fine. 
 

Post # 4
Member
2233 posts
Buzzing bee
  • Wedding: September 2012

Your Darling Husband just needs to get his score up and he will be ok, sometimes all that’s needed is 1-3 months for it to start improving. 

I wouldn’t use your downpayment to pay off his student loans unless the interest on the student loans is much higher than the interest you would get on a mortgage. 

Post # 5
Hostess
18643 posts
Honey Beekeeper
  • Wedding: June 2009

I don’t think you are going to be able to have him as a cosigner without taking his scores of a combination of both your scores and reducing your chances of getting a good rate.  Is it possible that you could take a year or so to build up his credit?  I wouldn’t pay off his student loans with the downpayment but make sure that he uses a revolving credit card and only charges a small amount each month and pay it off on time.  It will take a little time but his score will improve.

Post # 6
Member
38 posts
Newbee
  • Wedding: May 2014

 @anonynony:  Frown sorry I’m in the North of Ireland so under UK banking but the principles are the same it seems. I think you are doing the right thing getting credit to build the score, but usually here I think your score is temporarily dented by every app for 6 months so it knocks some points off. 

 

We had a similar problem buying our house last year – we were refused a lower interest rate on a mortgage because of 1 over the over draft drawing of £10 two year prior! Similar to you Experian did not show this but Equifax did and something so minor was a deal breaker!

What I will say is it can look favourably on paper with just you on the mortgage if he was happy with that? I would get some legal advice though on what would happen if something went wrong – I think its good you both know fully legal implications of that path before deciding.

Also check if you do a joint app for the loan, will you be affected credit score wise? It shows on reports here if you have any financial affiliation and I don’t know if it affects your score if one person has a lower score.

Post # 7
Member
38 posts
Newbee
  • Wedding: May 2014

@bessybunte:  re student loan, perhaps it might be better to just manage it until you get the mortgage instead of paying extra, especially if it is going to be a longer haul recovering the low score. Getting a good score is a lot about having credit and managing it wisely, then 3 months before the mortgage app, if you have extra, you could pay it off then if reducing the student loan is going to help your mortgage app

Post # 8
Hostess
18643 posts
Honey Beekeeper
  • Wedding: June 2009

@bessybunte:  Here is the US, scores are always seperate even if you have joint loans together.

Oh OP if you decided to get a loan on your own I would NOT put your husband on the deed.  Just to be safe, you don’t want to be responsible for a loan if something were to happen and he would have rights to half the property.

And another thing, do you have a credit card that you have had for a while with good history?  You can add him as an authorized user on it and the credit history from that card will automatically become his.  PS – This is one reason why my credit was so good that we were able to buy a house at 19 because I had my dad’s credit history from before I was born.

Post # 9
Member
3375 posts
Sugar bee
  • Wedding: October 2011

Ok calm down. It’s going to be ok! It will rise faster than you think. 

You need to get on the credit card with him as a cosigner. That’s whatmy parents did for me when I was trying to build credit and it helped raise my score. I didn’t think they had cosigners anymore but I found out they still do. Make sure to put him on all your cards not just as anauthorized user. 

Post # 10
Member
2233 posts
Buzzing bee
  • Wedding: September 2012

@MrsSaltWaterTaffy:  Adding him onto an already existing credit card is an great idea!

I would look into what the laws are in your state regarding putting your husband on the deed/title but not on the mortgage. In some places it doesn’t matter if a spouse is or isn’t on title, it’s a matrimonial home and therefore both spouses have rights to the property even without their name on title. 

Post # 11
Member
1370 posts
Bumble bee
  • Wedding: April 2012

I’m really sorry. I don’t have advice, but I’m following this thread. I just moved to the US and need to start my credit history. The bees seem to have given good advice so far! Good luck!

Post # 13
Hostess
18643 posts
Honey Beekeeper
  • Wedding: June 2009

@anonynony:  Nope your credit will not be affected by his since he is basically using your credit but you aren’t touching his.

Post # 14
Member
6998 posts
Busy Beekeeper
  • Wedding: February 2011

Do you guys have a few thousand for a secured credit card? When I was trying to raise my credit I gave 2k to the bank and they gave me a credit card with a 2k limit and I just Used it for gas and my phone bill and paid on it every month. I actually made money (not much) because it was put in a cd for 2 years and after two years I got my 2k back. It raised my score rather quickly when I started. 

Post # 15
Member
1576 posts
Bumble bee
  • Wedding: October 2012

You are more than likely young and your husband’s credit score is going to improve in a year or two. Heck I had really crappy credit most of my life and I am almost sorry to say that it really didn’t bother me all that much. But I wasn’t trying to buy a house either. I was a life-long renter until almostly exactly a year ago – bought my first home at age 53 and I HATE being a homeowner. IMO mortgage is really expensive rent and a ton more responsibilites.

 

Anyway, try to calm down. You find an even nicer place when hubby’s score improves.

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