Mortgage Company trouble

sdmerritt78 · Joined: 22 Jan 2008 Posts: 5 2.64 Dollars($)

My husband and I are trying to purchase land to build and we are trying to finance it all in one package. My husband has great credit but mine is not that great. The bank is not wanting to list me on the loan, wanting to use my credit against us but not look at my income. Is this how this works? It doesnt sound like it should work that way to me. Any opinions and help would be greatly appreciated. Thank you.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Sdmerritt,

Welcome to the forum.

I think you can take the loan on your husband's name. And both of you can pay the loan as your personal income is also high. I think it does not matter much if your name is on the mortgage or not. If you are on the deed, you own the property. So you can use your husband's good credit. So talk to him.

Feel free to ask if you have any further questions.

Best of luck,
Larry

sdmerritt78 · Joined: 22 Jan 2008 Posts: 5 2.64 Dollars($)

I think the same as you. The reason I am asking this is because the bank we have been talking to just turned us down and will not even attempt to try with my husband only. It just doesnt make any sense that they will use my credit but not my income.

livinginnky · Posted: Tue Jan 22, 2008 11:38 am Post subject:

Here is how this breaks down. If the bank doesn't use your credit they probably won't use your income either.

First off, Welcome to the forums!

And second, don't hold this against me, I am not a bank I just understand how and why they do certain things.

If you have any combination of 2 people getting a loan ie. Husband/Wife Boyfriend/Girlfriend Friend/Friend, it doesn't matter how you break it down the lender sees you as 2 people. 2 people with separate credit and income.

Now this is how the bank looks at these items. It doesn't matter who makes the most money it is who has the best credit that matters. If one of the people has high credit but low income and the other has high income but bad credit..... then the couple will qualify for 2 options and this is what you are probably running into...

you can either
A. Get a great rate and program on a lower loan amount.

OR

B. Get a higher rate on a higher loan amount.

So you see that the lender looks at, among other things, the credit ratings of both people and that is what decides the rest of the loan structure. At which point you get into the other qualifying aspects of a loan.

I hope this helps you and let me know if you have any questions.

sdmerritt78 · Joined: 22 Jan 2008 Posts: 5 2.64 Dollars($)

We both have high income but he has high credit and i have crappy credit. We bring home enough money to make 4 or more house payments a month.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Sdmerritt,

Welcome back.

That is good. If your husband's income is also good enough, then why did the bank turn down your husband? You are saying his income is high and credit is excellent. Then it should not be a problem for him to get the loan with good rates and terms.

By the way you should shop for lenders a bit and I am sure you will get the loan with best rates and terms. Even in this community there are hundreds of lenders from all over the United States. You can contact them at http://www.mortgagefit.com/unitedstates/

Hope this will help you.

Feel free to ask if you have any questions.

Best of luck,
Larry

gmakerley · Posted: Tue Jan 22, 2008 11:57 am Post subject:

the lesser of the two credit scores determines how the loan may be structured. if your credit score is too low, you and he will not qualify for the loan you are seeking. in order to qualify you for the best possible product, you would need to be eliminated from consideration on the loan.

in truth, they are not considering your credit; if they did, you wouldn't qualify at all (it appears, from what you wrote). had your score been high enough, you would be considered - both from a credit and income standpoint.

they pretty much did you a favor by not considering you a borrower and taking into account what your credit would do to the interest rate and charges.

sdmerritt78 · Joined: 22 Jan 2008 Posts: 5 2.64 Dollars($)

The bank was looking at his great credit and high score and my crappy credit too. But my income wasnt even considered. I just dont see why they just ignore all of my information and use his only but they wont. They used his good credit, my bad credit and his income. In my opinion if they are going to use my credit then they need to use my income too.

gmakerley · Posted: Tue Jan 22, 2008 2:05 pm Post subject:

there are specific guidelines relating to qualifying a borrower for a loan. credit is a major component.

the question here is, frankly, "if you couldn't handle payments on your other obligations properly, why should we presume that you will be willing and able to do so now?"

too many people with "crappy" credit have been able to obtain loans and ultimately led to losses that affected lenders, spouses, friends, families, and ultimately all of us.

not unlike most other businesses, this world of finance has regulations as well as guidelines. adhering to the guidelines pretty strictly is a fairly new thing, but it is a byproduct of all the mess that we saw taking place in the last 12-15 months.

this will continue for a while. my best advice to you is to take care of the items that constitute your "crappy" credit so that your income can be used to your benefit when borrowing in the future.

lisascherzer · Joined: 04 Jan 2008 Posts: 749 0.10 Dollars($)

He may have enough income to qualify for the mortgage in just his name. If this is the case, then the rate will be better than putting you both on the mortgage. You can still be on the title of the property though, even if you are not on the loan.

sdmerritt78 · Joined: 22 Jan 2008 Posts: 5 2.64 Dollars($)

Thats what my husband and I think too but the man at the bank will not use my husbands information without my information. He will not even run the numbers for us. It doesnt make any sense to me.

gmakerley · Posted: Thu Jan 24, 2008 7:36 am Post subject:

you are dissatisfied with the bank/loan officer you are dealing with. why not try another? there is no reason to fear approaching another lender to ask the same questions.

perhaps you will find a more compassionate soul who will take into account your desires and needs and find a reasonable solution.

lisascherzer · Joined: 04 Jan 2008 Posts: 749 0.10 Dollars($)

Hi sdmerritt78,

That doesn't make any sense to me either that the banker is insisting on using your information if you are not going to be on the loan. I would suggest moving on to work with someone that has the flexibility and the problem solving skills to get this loan done for you at good terms.

livinginnky · Posted: Fri Jan 25, 2008 9:18 am Post subject:

Lisa,

You are right, it doesn't make any sense.

Original poster,

Could you explain this a little better to me.

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