Joint Application on Mortgage – Credit scores?
Post date: August 31st, 2011If my husband and I apply jointly, I have been told they will use the lower middle score. Does that mean they will take his middle score and my middle score and then use whichever is lowest?
Also, looking at the scenario below, what do you think the minimum lower middle credit score needed to qualify for a loan:
- First time home buyers seeking approx 0,000 loan
- Approx 0,000 annual income
- 10% Down
- Under ,000 debt (student loan)
- 6 months reserve fund
- Stable job history
Our issue is that one of us has okay credit and the other not so great. Our middle score is 603 for one and 660 for the other, but they would take the 603 give its the lower. Will this prevent us from getting a loan with our other strong points?
« if my credit score is decent, but my income is low at the moment, would a cosigner help me to get a mortgage? How can i get low interest rate mortgage loan? »
August 31st, 2011 at 8:34 pm
You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments – credit-report-score.10001mb.com
August 31st, 2011 at 8:34 pm
They will take the lowest middle score. Your scores don’t look good enough to qualify for a mortgage. You need at least 620 for an FHA and 720 with a 20% down for a conventional.
Also, there are three versions of your credit report/score. The consumer version that you get, a version weighed for car loans, and a version weighed for mortgages. The mortgage version tends to be lower than the consumer one.
Keep in mind that mortgage companies will require you resolve any derogatory items on your credit report. You may want to negotiate settlements for as little as you can. Depending on how old the debt, you can settle for 25% to 50% in a lump sum payment. Get any settlement agreement in writing and don’t give collectors direct access to your bank account.
You may have to hold off another year or two to improve your scores and build more downpayment.
August 31st, 2011 at 8:34 pm
If they take that 603, you won’t qualify
They will have you get that score to at least 620 before they would take a risk