I'm confused as to the problem. Why do you anticipate problems when you both have good credit and sufficient income for a good DTI? Are you concerned that a lender would be hesitant to lend because you have to pay taxes and maintenance on the old house until you sell it?
Starting Score: EQ 583 TU04 619 EX 592 (lender pull) 2010Back in the olden days, it wasn't standard for both spouses to be employed. I have a friend who just got remarried and one of the benefits to refinancing her mortgage was to put her new husband on it. While his income was helpful, the reason she wanted to make sure he was on the mortgage (and the deed) was so that her ex husband couldn't kick him out of the house if she died, since her children with #1 live there.
Imagine if she were the one who didn't have a job, and she was maintaining the household. Do you think there would be the same apprehension about having her on the mortgage while "unemployed"? I could see it being something you might want to stay off of if you were anticipating a divorce and didn't believe she'd pay the mortgage or your credit were bad or you had debts that you didn't want held against her, or something like that, but if your PITI and DTI are in line for that purchase, I wouldn't think it would be a problem.
If your marriage is pretty solid, I'd go in with both of your names. Sometimes mortgage companies do not want to add another person's name on to the original loan if they weren't on the original application. And most mortgages have clauses that you can't add anyone onto the deed without first modifying the mortgage. So if credit history is good and the debt-to-income ratio would still be good, I'd go for it.
Next, consider how it might play into any possible estate problems. Should something happen to your wife while she is the only one on the mortgage, the mortgage holder will want to be paid in full, because the only person on the mortgage is deceased. This could force you to be dealing with your wife's death AND trying to get a mortgage at the same time - and who knows what the rules (and interest rates) will be in the future.
Rates are low now. If you are both on the mortgage and your wife dies, the note does not become immediately due and payable, and you won't have to try to get a mortgage at that time - when you might or might not be employed.
@MarineVietVet wrote:
@Anonymous wrote:Ok, here's the situation that I could really use some advice on. My wife and I should be in the process of selling my house soon, and we plan to build a new home (with one of the national builders). We have virtually no credit card debt anymore and I've owned my house for a little over 5 years now. My problem is that I've been unemployed for about 7-8 months now, she has a good paying job and we should be easily able to afford the new mortgage on her salary alone. I just ran my credit reports which are in great standing, and my FICO score came back at 794. She ran her's last year and said it was in the 760's. I have more credit history than she does and more available credit (she only has one or two credit cards) but my real question is should we try and go in and build our new house with both of our names on it, or should we only put it under her name initially? I have better scores, but no job, she has still pretty great scores and a good job...what should we do?
Thank you to any responses.Hello and welcome.
Only you know all the details of your situation but I personally would be very reluctant to go forward with new debt while unemployed. But that's just me. You have to decide on your own.
Can you stay where you are for now during your unemployment? That's what I would do but I wish you well in whatever decision you make.
From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774
"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".
MVV, I don't understand - are you suggesting that they shouldn't take on new debt while she's the only one employed because you're worried about her job stability? OP's also got a paid-for home that could generate rental income if they don't sell it.