What kind of score do I need?

[lcochran3]

My fiance and I are looking to buy our first home. We plan to start the process in April of this year. My question is - what type of score do I need to have to even be considered? Currently I am at Equifax 609, Experian 658 and Transunion 634. I had a poor credit history in the past but have done pretty good since 2010. I just recently was able to pay down some debt which should hopefully help my scores out a little. I have disputed items I believe to be inaccurate on my reports and am waiting for results. I am not sure of my fiances exact score as he has not checked it yet - but we both believe is credit is pretty good (750-800 range).

He makes $65k plus some overtime annually, I make $42,500. My question is  - are we better off having him apply for the mortgage on his own, or should we try and qualify with us both?

Thanks!

[Pigeyex]

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@lcochran3 wrote:

My fiance and I are looking to buy our first home. We plan to start the process in April of this year. My question is - what type of score do I need to have to even be considered? Currently I am at Equifax 609, Experian 658 and Transunion 634. I had a poor credit history in the past but have done pretty good since 2010. I just recently was able to pay down some debt which should hopefully help my scores out a little. I have disputed items I believe to be inaccurate on my reports and am waiting for results. I am not sure of my fiances exact score as he has not checked it yet - but we both believe is credit is pretty good (750-800 range).

He makes $65k plus some overtime annually, I make $42,500. My question is  - are we better off having him apply for the mortgage on his own, or should we try and qualify with us both?

Thanks!

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Your middle score should be 640+ -- and if you can get to 680+ (or higher) you'd probably get an even better rate.  I would think your scores are extremely close; is there some CC debt you can pay down in order to get a better credit utilization and quickly improve your scores?

I would certainly think you could qualify for a bigger/better mortgage using both of your incomes, so I would ask your loan officer to work up a scenario for you both ways -- one using your fiance's income (and higher credit scores, which generally mean lower interest rates) . . . and one using both yours and his, but might mean a higher interest rate.

You'll want to have the loan officer qualify you beyond just your credit SCORES, but rather for overal credit WORTHINESS.  Length of time on your job/in your career, income, debt-to-income, etc. -- all of these factor in to how desireable your mortgage application file will look.  They should be able to guide you on which is the best way to go, fiance-only or jointly.

Pigeye