Couples that has disparate credit scores can lower their costs by having only the person with the higher credit score on the mortgage loan. Both can be on the sales contract and the title to the home.
Lenders use the lower of the two middle scores for consumers applying for joint credit. If the difference between the two middle scores is significant, having both consumers on the mortgage can increase the cost of the loan. Using only the person with the higher credit score can avoid this extra cost. The person on the mortgage loan must be able to qualify for the mortgage on only their income as the income for the consumer not on the loan will not be counted.
Just one of many reasons why potential buyers should get pre-approved with a lender first. Next? Find a local Realtor to work with and start a relationship.
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