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In example….when we buy a house next year, will they have to pull my credit or can they make it to where my income is consider like extra income on his credit and not pull my name and credit into the loan? Once I have all by bills paid (minus car loan) how long does it take to gain credit back again when I have had slow pay on credit cards and etc?

2 Thoughts on My credit is less then perfect and his is great….How is this going to affect us after we marry?
  1. Reply
    Perfectly Imperfect
    November 26, 2012 at 1:02 pm

    I am in the same boat exactly. Well, we already did the house thing and they used his credit, but our combined income. If you get a house in both of your names, they may pull your credit, but if it’s under his only, prolly not.

  2. Reply
    anthon g
    November 26, 2012 at 1:30 pm

    As a mortgage broker I will tell you that it depends. Obviously, I need more information from you but I will provide you with some general information which I know you will find usual in your home buying endeavor.

    First of all, I’ve done loans for married couples were one of the spouses had really bad credit. One thing to keep in mind, that EVERYBODY in a mortgage application needs to provide a credit report. However, married couples can buy a house without someone going into the mortgage application!

    Huh!!!??

    Well although you may not go on the mortgage application you CAN still sign to be added to title with your husband at the closing of escrow. The only difference is that you will have ownership of the house without the liability of the mortgage. Funny huh. Let’s say hypothetically that you and your husband get in a really bad fight one day and he decides to leave town (he disappears) well the late mortgages won’t go to your credit history…..but that’s just a side note. Of course, you gotta pay the mortgage otherwise the bank will take that house back.

    Here are couple things that could happen

    A. Possibility 1

    If you have several lates that are at least 90 days old you should be fine though the lender and mortgage broker might charge you a higher interest rate or points. Now if you have collections, you WILL have to payoff those collections at closing of escrow (at least here in California it’s happening alot). If you have lots of collections and lots of lates chances are you will be thrown out the mortgage application. BUT your husband will have to qualify for the mortgage of the house solely on his INCOME alone.

    Now you can do a stated income/ verified assets loan product especially if it’s a conforming loan (less $ 417,000). I’ve seen the practice of combining both the husband’s and wife’s income into the stated income program because even when you sign the 4506-T (a form which the lender will most likely have you sign which grants them the right to request your ORIGINAL tax return from the IRS) ) your tax return is based off of both your incomes!!!!

    The problem is that the lender might question the increase in his salary because with the mortgage meltdown now lender’s don’t want to lend money.

    B. Solution for you

    1) START SAVING LOTS OF MONEY. Whatever the price of the house is you want to make sure you put at least 10% down. Yes 100% (if full doc) still exists but I don’t recommend this for people who know they will live in their home short-term (1-6yrs).

    2) If you and your husband have multiple accounts were some have are in your name only—you might want to transfer the monies from bank accts that have your name only to his. BECAUSE YOU WILL NEED TO ALLOW THAT MONEY TO SEASON FOR 90-days since the lender’s make a 3-month average to determine that no “gift-money” was provided.

    3) By the way—gift funds are provided towards the escrow deposit NOT towards the PITI (total=mortgage principle+interest+insurance+taxes/month) requirement which can range from 3months to 12 months. For full-doc usually 3 months or leass.

    4) Keep in that if your CLTV (combined loan to value) is $ 417,000 or less you will have a better interest rate. So start looking. ANd especially with the fall of house prices it is forcasted that in the future homes will come down from the over inflation.

    5) Mainly save save save….stop being late….start paying down your credit cards…you need at least 3 trade lines (accounts that are showin in your credit report) with one of those showing at least a 2 yr history of credit.

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