My Spouse Has Bad Credit – Can We Get a Mortgage Loan?

Mortgages

When you apply for a mortgage you essentially have a lead person on the mortgage that should be the person with the higher credit score and is most likely the person with the higher income. The other person is merely a co applicant. You should make sure that the primary borrower is not the person who has the bad credit. Though the home will be equally yours, you cannot have two people applying for the same loan.

How Can It Affect You

There is a chance that if you do have one person on the mortgage that has bad credit you will have some obstacles when you are going through the application process. The one thing that you should be prepared to do is to fix some of the issues causing your bad credit. One of the things that are essential to fix is if you have anything in collections. If you do have something in collections then you should really take care of the issue quickly. You should see if there is something you can do to have it taken off your credit report. You will need letters of satisfactory from the bank or wherever you have cleared up your debt.

Closing Costs

Depending on where you are getting your mortgage from you might find that they interest rate might go up slightly or your closing costs can change as well if you have bad credit. These are all minor issues that you can deal with. It is the goal of most financial institutions to get you approved. They want your business and they want your interest. Remember in the beginning of the loan you are paying heavier on the interest than you are on the principal. Do allow your bad credit to get in the way of your dreams of being a homeowner.

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