Married couples usually obtain a mortgage together. Finance expert Mortgage Investors Group states they can combine their assets to be eligible for a bigger house. However, some partners find out that he or she holds a high credit score, while their partner does not.
Based on FICO.com, over 20 percent of the population in the U.S. have a credit score of under 600. Statistics reveal that most couples who are in a relationship have extremely varied credit ratings.
Luckily, there is a method on how to still be eligible by your mortgage lender in Jackson, TN despite being in this situation. Just one partner or spouse can apply for a mortgage.
By Applying Alone, You Increase Chances of Approval
The issue happens when your partner or spouse’s middle score is weak. Your lender will not even consider your high score and your spouse’s low score to add these together. As an alternative, the lender will only depend on the lowest middle score between your spouse and you.
Your lender will just remove the higher middle school from the picture. It does not really matter if your FICO score is great because there is a possibility that you will not get their approval. Otherwise, your partner’s FICO score might lead you to pay more interest rate.
If you happen to end up in this situation, it will make more sense to obtain a mortgage without your spouse or partner. This is the only method for your lender to only consider your high FICO score.
You Can Be Eligible for Only One Income
If you do get a loan on your own, your lender will not consider your partner or spouse’s income. This means that you could be eligible for a mortgage with a lower amount or you have to buy a home that is less expensive.
This tactic is ideal if the spouse who has a higher credit also earn a lot of income. In the opposite case, a one-partner loan application might not qualify. To make sure, have experts analyze your borrowing capacity.