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Creditscore of co-borrower - How does it affect the mortgage

Posted on: 12th Mar, 2007 02:15 pm
Hi all,

We are a young, first time home buyers and are confused about lot of things. One main confusion is like this.

Our(my husband's and mine) total annual income is $170,000. My husband has a very good (> 800) credit score. I haven't checked my credit score, but I don't think I will have much of a credit score since I am an add on in my husband's credit card and all our loans which we had taken and payed off are all in his name. (Stupid of us for not thinking ahead).

Now we are thinking of taking a mortgage together (me as a co-borrower). Will the fact that I might not have a good credit score affect the amount of mortgage we get?

Appreciate if someone could help us in this.
You husband credit score is as good as one can have (800). As he will be the primary borrower, his information is what the lender will be looking at. Your poor score will not affect your chances of getting a good mortgage.
Posted on: 12th Mar, 2007 02:32 pm
"Now we are thinking of taking a mortgage together (me as a co-borrower). "
With a 800 score it will be easier for your husband to qualify for the mortgage on his own profile. You need not be made the co-borrower as your score is not good enough. Though there is a advantage that the total annual income is greater than what it would be if he applies alone.

Check the debt to income ratio that comes if he is applying alone & while both of you apply together, if the dti is within lender's required ratio when your husband applies single then you need not be made co-borrower with your husband.
Posted on: 12th Mar, 2007 04:32 pm
Hi Guest,

Welcome to the forum.

There's always a first time for everything you do and there are chances of making mistakes at that time. But one who learns from mistakes wins the game in the long run.

It is great to hear that your husband has a good credit score. I come across people complaining for not having good credit. You said you assume that you have a bad score. Well, do not assume; instead get a free copy of your credit report and find out what it actually says. You may get it from annualcreditreport.com for free.

However, your credit score may not be satisfactory but that will not be affecting your qualifying loan amount. Off course, if you have a good score, you can get a much lower rate as your husband's score is also no doubt good enough to qualify for the loan. Overall, I feel you will be able to qualify for a considerable loan amount and that too at a reasonable rate of interest.

Hope this information will help you.

God bless you.

Samantha
Posted on: 12th Mar, 2007 11:38 pm
Sugarbaker, marystothard, Samantha thanks to you for the replies. I am clarified on this now.

Thanks again.
Posted on: 13th Mar, 2007 07:05 am
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