My husband and I are looking to get a mortgage within a few months. Because we may be starting a family soon, my husband wants to try for a mortgage on his income alone (not sure what we can get with it, but we'll see.) My question is, if we do that, will they pull my credit at all, if my name isnt on the deed? My credit is okay, but I have a few dings, and I have heard that different responses Any ideas? Also, once pre approved, how much difference will a 401 K loan make (for deposit) on our credit worthiness? I know they show up on pay stubs because they are paid via payroll deduction. Is it considered bad, since you are really paying the money back into your own account? Thanks
They will take the 401k loan into consideration on your income to debt ratio, because they will see it in the pay stub. It doesn't matter that you're paying yourself back, it still reduces your take home pay. I'm probably going to get slammed for this next statement by the moral police, but here goes. Have your husband check with the payroll dept. of his company to see if he can have the deduction stopped for one or two pays and then pay that months payment by personal check. That way you'll have a stub or two without the 401k loan deduction in it. They also may not do this. I work for a small privately owned company, so it wasn't a problem for me to do this. They may want the latest one or two, so you would want to do this close to application time.
Thanks Pat. I work for a huge insurance company, so I doubt that they will do this for me... Anyone know if a spouse's credit is pulled when the other spouse is applying for mortgage in his own name? Thanks
As far as I know, only the credit of the person applying is pulled. If your income is not being considered towards the loan, they have no reason to pull it.
My wife and I did this when we bought our first home. She does not have any income and bad credit so we did the loan just in my name. They did however put her name on the deed, and they never pulled her credit. Tbird
I got a loan in my name only, ex-wife was on the deed. She did not have a job so the loan officers said it was pointless to pull her credit when it was my income in question.
you dont have to be on the loan to be on the trust deed. You just have the title company do a quick add to the trust deed right after escrow closes.. Kev
I was wondering this myself today. Since I have been doing clean up on my reports and hubby's, his is getting better and I still have a few stubborn accts. so I was debating that angle!!!!
out of curiousity, I have heard that if you have charge-off's they have to be paid to get a home. The reason being that the creditor can put a lien on your new home (judgement-whatever it's called). What if the SOL is up? Do you still have to pay them off???
"most" lenders do require any outstanding debts be paid prior to mortgage approval regardless of the SOL. Fha doesn't require accounts less than 100.00 to be paid according to their site. Some lenders will approve, but most do not or they will approve with condition that the account is paid off and add the amount into the final closing figures.
That's what we did. My credit was so-so and my husband's was good. He got the loan in his name only. No problems, no questions asked.
I am first going to see if I can get some removed. If not plan B- pay for delete if not I guess last alternative plan C---pay regardless. I hope I can get some off first so that our scores go up. Does anyone know what kinda scores you have to get to get a finance company to give you a loan to purchase a home? I haven't even checked my hubby's, but he doesn't really have alot of negative information just not a lot of positive info (he's always just paid cash for things never applied for much credit)
Lat I have seen people with 585 FICo get mortgages, however you are getting subprime rates. Which reduce the amount of house you can get as so much of your money is eaten up in interest. A 620 seems to get you the loan as close to prime as possible. 700 you are in the house with no hassles and a good rate. Hope this helps..... Note if either one of you is a Vet the VA laon criteria is not as strict nor is it score driven. got to www.miltary.com to learn more.
