First Time Buyer question

NeedinHelp42 · ‎06-02-2008

My wife and I are looking at purchasing our first home. We are thinking about purchasing the home in her name only. She has a 750+ credit score and I am around 550 and trying to rebuild. The problem is that we need to know if putting the house in her name and keeping my two charge offs, student loan debt, etc. away from the process means we are going to be limited to her income only on the mortgage application. Is there a way to lay out that we make a combined 85K or so together and just put the house in her name even though both of us will be paying the mortgage. Otherwise, we are going to be looking at half that amount.

For those with some experience in this, we are shooting for a home in the 190k-220k range (from calculations we've done this will give us a payment between 900-1200 a month). Does this seem realistic or do you have any other advice with regard to the way we should look to go about financing.

Thanks in advance for any help

Anonymous · ‎06-02-2008

To use your income you have to use your credit.

I can't tell you about the payments; our payments on a 289k mortgage with taxes and insurance is 2050 (we live in a hurricane zone so we have extra insurance, but we avoid PMI b/c it's a VA loan)

DallasLoanGuy · ‎06-02-2008

both incomes = both credit reports

think cake and eating it too

Retired Lender

BillR · ‎06-07-2008

I'm not sure I agree with the others. I think you can use your income without your being on the app. It's called Household income. Any mortgage loan will require documentation so you're likely to have to furnish your last 2 years bank records and a pay stub which should validate that 85k you make. The bank only wants to get repaid so your income is really a plus for them. Finally your wife's Credit Score is Excellent and even if they require you on the loan I don't think you're at risk for being declined. 620 I hear is the floor at the moment and even a simple average clears that hurdle for you. Finally, I would suggest you call a Mortgage broker and talk to them on the phone. They don't have to pull your credit to tell you if they can qualify you. Once you tell them your FICO's and income they know what they can and can't do with you. Then as long as your incomes and FICO's match what you told them you're good. Hope that helps and good luck in the new home search.

Bill

750/720/755

Anonymous · ‎06-08-2008

@BillR wrote:
They don't have to pull your credit to tell you if they can qualify you. Once you tell them your FICO's and income they know what they can and can't do with you. Then as long as your incomes and FICO's match what you told them you're good. Hope that helps and good luck in the new home search.
Bill
750/720/755

I would disagree, I think ... I'm pretty sure that I've heard that other items count in making that determination -- not just FICOs and income.

As it will be a few months from now, our FICOs will be high enough to qualify and our income most definitely, but we have lates, no reporting credit cards, and a tax lien. If a mortgage broker told US that we qualified, merely based on FICOs and income, I think s/he'd be in (and us, too) for a nasty surprise. S/he'd HAVE to do a hard pull.

Plus, doesn't the value of the home vs. the amount of loan matter, too?

No offense ... just a n00bie trying to understand -- and LEARN!!

BillR · ‎06-08-2008

I'm sorry if you felt I was saying only FICO's and income count in getting a mortgage as that was not my intent. You are absolutely correct there are other issues that have to be considered like LTV ratio, income to debt ratio, etc. My point was simply in trying to say a Mortgage broker can give you advise "over the phone" without pulling your credit and as long as the info you give them is correct they can give you pretty good advice and tell you what your options are. To actually offer a mortgage loan they would have to do a "Hard" pull but not to give you advice which is all I was advocating.

Bill

750/720/755

Anonymous · ‎06-08-2008

I just pointed it out because I've seen several threads referring to "My FICO is 700+ and my income is enough -- why didn't I get approved?!"

I think nowadays, with the lenders tightening their belts from the whole subprime fiasco, they look at EVERYTHING. I've heard that they'll pull your bank accounts for a couple of years, too (rather, have you provide them prior to approving).

I'd be surprised if they don't look at your entire family's finances!

chartley3 · ‎06-08-2008

The posters are correct, if you want to use your income they need your credit too. It never hurts to talk to a Loan Officer and see what options are available.

DallasLoanGuy · ‎06-08-2008

BillR wrote:
I'm not sure I agree with the others. I think you can use your income without your being on the app.WRONG!!!!! It's called Household income.HUH?!?!?!? Any mortgage loan will require documentation so you're likely to have to furnish your last 2 years bank records and a pay stub which should validate that 85k you make. The bank only wants to get repaid so your income is really a plus for them. Finally your wife's Credit Score is Excellent and even if they require you on the loan I don't think you're at risk for being declined. 620 I hear is the floor 500 is the minimum for FHAat the moment and even a simple average clears that hurdle for you.WE DON'T AVERAGE CREDIT SCORES Finally, I would suggest you call a Mortgage broker and talk to them on the phone. FINALLY, SOME CORRECT ADVICE They don't have to pull your credit to tell you if they can qualify you. NOW YOU ARE WRONG AGAIN...!!!! Once you tell them your FICO's and income they know what they can and can't do with you. Then as long as your incomes and FICO's match what you told them you're good. Hope that helps and good luck in the new home search.

Bill
750/720/755

NeedinHelp42,

Please do not consider the above poster as credible. He got one thing right.... you should talk to a loan officer.

AND

He proves my point that you should not rely on advice from a discussion forum. Consider it guidelines... that should be validated by a pro.

Retired Lender

Anonymous · ‎06-09-2008

I think he confusion might stem from a few "online pre-approval" sites like E-Loan that ask for "household income." Not only have I been advised to take E-Loan with a grain of salt, but I'd think common sense would dictate that a housewife who has no income of her own, can't just get a mortgage in her name using her hubby's income (wouldn't that be FRAUD?).

Still, I think it's rather misleading on E-Loan's (et al) part! But I can see the confusion!! :/