Joint Loan Question

ba6412 · ‎05-24-2016

Hi,

My girlfriend and I recently got engaged. In Michigan, I guess that means we can legally apply for a Joint Loan.

Please see below our situation and my question:

Myself: My scores are currently at 595. I have been repairing my credit for the last 6 months in hopes of purchasing a home, however things are going slow. I never realized how difficult this would be (writing GW letters and getting everything of my father's off my CR). I also have a judgement that was satisfied. I am working with the plaintiff's attorney to have it removed from my credit report, however this takes time as well. Pretty much, I cannot get a mortgage on my own.

My Fiance: She has at 745 score. She doesn't have a ton of credit history, but has good scores and has 4 credit cards that are paid on properly. She is in good shape and could most likely get a loan.

QUESTION: What is the best route for us to obtain a loan together? I would hate for it to be in her name, when I would like us to have a joint mortgage. Is this possible for me to also be on the loan with my issues going on with my credit? We have plans to sit down with a loan officer soon, however I want to know what to expect.

Any information or suggestions would be very helpful.

Thank you,

J

Anonymous · ‎05-24-2016

If your fiance can qualify on her own, that would definitely be the way to go. You can always be added to the title. Don't let pride or ego interfere with the best financial decision .

ba6412 · ‎05-24-2016

Thank you for your reply. I more or less would like it to be a joint loan if possible.

I know it seems to be ego, however it is not. It is the fact that I don't want her to feel like the burden is all on her.

ezdriver · ‎05-24-2016

@ba6412 wrote:
Thank you for your reply. I more or less would like it to be a joint loan if possible.

I know it seems to be ego, however it is not. It is the fact that I don't want her to feel like the burden is all on her.

The lender will use the lower of two middle scores of each applicant. No way around that requirement.

Anonymous · ‎05-24-2016

As dpeezy stated, best decision is to put her name alone on the loan. You could always be added on later. To answer your question, it's possible to get a joint loan but expect some insane rates...

Anonymous · ‎05-24-2016

I'd recommend just her being on the loan. My husband and I bought a house back in 2008 and he was the only one on the loan but I was on the deed. We will be buying again at the beginning of the year but this time I will be the only one on the loan due to his lower scores but he will be on the deed.

Anonymous · ‎05-24-2016

@ba6412 wrote:
Thank you for your reply. I more or less would like it to be a joint loan if possible.

I know it seems to be ego, however it is not. It is the fact that I don't want her to feel like the burden is all on her.

Do you guys have a joint account? Coming from a woman's perspective (I will be the only one on the loan when we buy at the beginning of the year) I wouldn't feel like the burden is all on me. My husband and I have a joint checking account so financially all income no matter who deposits it into the account belongs to both of us and it's up to both of us to ensure there's enough money there to pay bills.

ba6412 · ‎05-24-2016

Thank you for your reply!!

We do have a joint savings account, but we are open to a joint checking account. If she puts the mortgage in her name, what is the best way to at least put some burden on me? Do I put my name in the deed or do I put it in the title?

Thanks again!

J

Anonymous · ‎05-24-2016

Your name can be on everything except the mortgage as far as I know. Have you talked to her about her feelings about getting a mortgage in her name only?

Anonymous · ‎05-24-2016

If you really want to be on the mortgage perhaps consider waiting until you can get your middle score up to 620. If your current mid mortgage score is 595 and you've been working on GW deletes and going about getting things removed using other methods it will likely only take getting 1-2 of the negative accts removed from your report to get you over the 620 mark. Of course, your mortgage rate will be lower since they will go off your mid score and not your fiance's. I had 3 collections accounts on my report and was able to get them removed eventually. Just took a lot of letters/emails