Can someone be approved for a mortgage loan using only one spouses FICO scores (higher scores), but use both incomes?
bizwiz41 - thanks for the response. Do you know how they would calculate your interest rate? Would they take the 2 lowest scores on each and average?
Generally, they "average" the scores, but each lender is different, so be careful. There are a lot of criteria used in issuing mortgages. You may want to try "what if" scenarios with your lender(s). Pull all credit scores and reports for you and your spouse, pull incomes and detail individual and combined. A decent mortgage broker/rep will be able to give you a fair estimation of your options. If you ask, often they will tell you what the "break points" are for interest rates as far as credit scores and incomes. Keep in mind that the amount of debt that you have outstanding is a crucial factor at the time of applying for the mortgage. Any "open" negative credit tradelines will also need to be taken care of. Your credit score, and reports, are only a part of the mortgage approval process. The situation depends upon the amount you are trying to get with a mortgage, against income levels, home value, other debt, etc.. We would need a few more details to give you a better picture. I suggest you open conversations with a lender to explore options. You may be suprised at what you can get. But..BE CAREFUL these days, be suspicious of anything that seems "too good to be true". I suggest you go to www.bankrate.com and look at some of the calculators, they should be able to give you a decent idea of available rates, loan amounts and income/credit requirements.
Depending on what state you are in can make a difference on how lenders deal. In Texas most lenders will take the middle score (ex: Exp 720, Trans 680, EQ 520). Your middle score will be 680. With the subprime market hitting rock bottom and the politicians freaking-out, lenders are currently raising the credit score criteria. For instance, you might could have gotten an A-paper loan a few months with a credit score of 700, now it's at least 720. Again, just make sure that you speak with a reputable lender. Online companies may be okay to use for "research", but I would never, never, never recommend using them for your loan. I'm not talking about companies that have websites, I'm talking about using a website without having developed some sort of relationship with a loan officer. I have some friends that did this very thing and are now on the verge of foreclosure due to an online, unethical loan officer who was only interested in the "bottom line" and not helping people. They had come to me first and I told them that I couldn't do a loan that I felt comfortable giving them. I guess they wanted the house anyway. They are about to lose it now and be in an even worse financial predicament. Just be careful and make sure you get good advice from someone knowledgable. When you do, follow it.
