Couples that purchase a home:
If you are seeking purchasing a home as a couple and you are interested in getting approved for a mortgage it’s important to remember that both of you have to pass an appropriate credit check. While a home can be purchased by just one spouse it’s extremely important that both of you work on improving your credit score and disputing your past credit history if there are errors in reporting. Couples that purchase homes should typically be very up front with each other and should take all efforts to repair credit both as a couple and as an individual.
Here are some top tips for couples that are interested in purchasing a home:
While being married you still have individual credit scores. Marriage considered common-law status, does not constitute a linked credit score as soon as the two of you are legally recognized as together. Mortgage lenders are looking for reliable income from both sources as well as reliable credit history from each spouse.
The reason that your credit score is so important with a mortgage is that each spouse will be financially obligated to the loan legally, regardless of whether or not the couple breaks up or if a person potentially fall sick or fatally ill.
But wait, one of us has an 800 credit score already. Yes this may be the case for one of you and that makes us happy. In most cases a mortgage lender is looking for a credit score between 580 up to a maximum of 720 for both applicants. It’s possible you could be denied a mortgage if your spouse has a credit score of 550.
So with reaching just the bare minimum credit rating, this can have its disadvantages. Couples that have a lower average score can often experience higher interest rates, than those that have a better or higher credit score as individuals. Unfortunately if one spouse in a relationship has great credit and the other has had difficulty in the past the joint application for a mortgage is not going to have choice interest rates.
Listen Couples, there is really no other way around that fact that you both will have to be on the same wavelength financially. Start with budgeting and having your scores in a position to obtain the best possible outcome for a loan. This is why credit repair is so essential to eventually being able to own a home.
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