Hey gang...looking from some pros out there regarding mortgages...details below. --------------------------------------------------------- DH and I are looking to buy a house. (South East Pennsy.) I have so-so credit, but good income. (scores: ~575 ~620 ~655) DH has excellent credit, but so-so income. (scores: all 700ish) Combined gross annual salary ~$112k We have 1 car loan each..both around $10k Credit card bals: ~$1k (easily paid off) Savings: ~$10k _________________________________________________ My question: Can/Do lenders look at only one applicants credit and the other applicants income? I'd really like to know what to expect when talking to one of these folks. I'd like to obviously get the best deal, but not have to go through the wringer cuz of my not-so-hot credit. Is there any way to ONLY use DH's credit and my (or our) income...as to avoid "icky" credit explains/confessionals on my behalf? Of course, i'm working to get my scores up..but takes time...and if it's suggested that we wait, then so be it...no hurry. All advice is sincerely appreciated... Thanks, DB
I think, but I'm not sure that lenders will take the middle score of the higher wage earner in the case of a joint mortgage.
Thanks kit...anyone else have knowledge of this? Really looking for some perspective/experience.. Thanks, DB
When I got my FHA mortgage in 96 they took both our incomes and looked at BOTH credit reports but they took the middle score on both of them. I would think that if you are both applying then they would have to evaluate both credit reports as you are both jointly liable for the mortgage note. But then again I'm not a mortgage expert so I really can't answer your question...sorry! They did take our joint income and our joint debts and figured out our debt to income ratios that way too.
So basically what i'm hearing is that they'd take both our incomes...figure out the median..then take all six of our scores and come out w/ a median there as well? Thanks, DB
No, they took both our incomes and took that number for the debt to income ratios. There was NO median in the income part. Then they took both our credit reports and took the medians on both of them.
