When Good Credit Marries Bad

Each person has their own credit report and score. A good credit borrower can only help the spouse with bad credit—however the bad credit can effect a good credit borrower if they sign on joint accounts.  Ask questions of your spouse and keep separate credit if needed because one spouse’s bad credit could bring down the qualification for a home loan. Home loan programs use the lower of the scores to calculate rate and payment. Since a home loan is typically a high dollar commitment, even a 1% increase in rate can make a big difference in the monthly payment. The lender you choose should help weigh the pros and cons of using only one income to qualify vs. dual income qualification at a higher rate and payment. In some cases, an even better option may be to wait before taking out a home loan. During that time, the spouse with challenging credit can take some time to improve their credit rating and potentially save money for a larger down payment –which makes it easier to qualify.

Meet Cheryl!

About Cheryl

As a successful business owner and community leader, Cheryl Braunschweiger is known and respected for getting things done with a degree of skill and enthusiasm that bring out the best in those around her - colleagues, clients and friends. The name of her business, ALMC Mortgage, reflects Cheryl's philosophy and personality. She says it stands for All Loans Must Close –a reflection of her determination to do whatever it takes to serve her clients. Cheryl has been in the mortgage lending business for 20 years. Read More About Cheryl
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