Important Information for Joint Mortgage Loan Applications

If you and your spouse are thinking of applying for a joint mortgage loan but one of you has bad credit, you may really have a difficult time. This is because the lender usually considers the lower credit score in deciding the rate of interest it will charge to the both of you. Here are some of the things you have to know about joint mortgage loan application with bad credit.

 

1.) The Person with Higher Credit can Apply for the Loan Alone
Although with two borrowers it is easier to get a higher amount of loan, this is only possible if both of you has good credit. Thus, if one of you earns a good income and has a good credit, you can already qualify for the mortgage.

The person with the higher income is usually considered as the main borrower. Just know that you will not be qualified to a bigger of loan with only one applicant.

2.) Find a co-signerLogo of the Federal Housing Administration.
A parent, family member or close friend who can act as a co-signer can help you qualify for the amount of loan that you desire. For as long as their credit is good, any of them can take the place of your spouse with bad credit as a co-applicant. If you are thinking of obtaining an FHA mortgage, you must find a co-signer who is related to you. As a word of caution, you might have difficulties convincing your potential co-signer to sign for you if he or she has a higher income than you and your partner. The reason for this is that he or she will be considered as the primary borrower and that will be too risky for him or her.

3.) Legal Information
If you have finalized your decision to apply for a loan using one of your names, you can still request for the deed of the property to be placed on both your names since the deed and mortgage are usually separate. But, there are instances when the lender has to decide on this so make sure to check their policy first. Moreover, if only one name is stipulated in the mortgage but the two of you will pay for it, make sure to have a signed agreement in place just in case you separate. This is especially a security measure for couples who are not married.

Related articles
Enhanced by Zemanta
Share and Enjoy:
  • Print
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks
  • Blogplay

Related posts on loans for people with bad credit:

  1. Obtaining a Mortgage with Bad Credit Obtaining a mortgage with bad credit Obtaining a mortgage with bad credit these days is almost impossible. Because of the poor economy, and the problems the United States experienced during the credit crunch and the housing bubble bursting, banks and lending institutions are…...
  2. Things to Expect from Home Loans for People with Bad Credit Things to Expect from Home Loans for People with Bad Credit Bad credit features similar consequences on all kind of financial loans. However, home loans for people with bad credit have a few variations that need to be clarified. The loan…...
  3. Your Decision About Mortgage Refinancing Is An Importan One Get help with your Decision About Mortgage Refinancing. It always helps to have an outside objective opinion. And remember when you refinance you will get a loan based on your income and your credit score. The better your credit score the better interest rate you will get. And remember the...
  4. Can I get an Auto Loan with Bad Credit if I am Self Employed? Self Employment on Bad Credit Auto Loans In order for you to know how to qualify for approved auto loans with self employment income, you first have to identify the qualification issues. If you’re both credit-challenged and self employed you need…...
  5. Mortgage Loans For Beople With Bad Credit Most of the government’s TARP money (see the $700 billion dollar bailout) is being used for loan modifications such as yours. The government’s TARP money will not last forever, get your fair share before it’s too late. Last week the lawyers…...

Tagged with: • • • • • • •

Filed under: mortgage • mortgage loans

Like this post? Subscribe to my RSS feed and get loads more!