Is my credit score high enough?
My fiance and I want to buy a house. He has a high credit score and a full time factory job. I am currently an unemployed, part-time student with $7200 credit card debt from school.
We were thinking if I should be put on the mortgage or would the fact that I am unemployed with debt hurt our chances of a loan.
My credit score is 730 and my report shows that I’ve never been late on a payment.
The house we want to purchase is in the 75,000 – 90,000 range.
He’s thinking of putting his brother who is employed with lesser debt, but lesser credit score than mine on the mortgage and I’m wondering which will increase our chances of getting the loan. His brother will be living with us.
Thanks so much for you help,
Melbel
Your credit score is good. Remember that a lender is looking at several factors, and your credit score is just one of them. They’ll want to see what your income to debit ratio is (How much money you earn relative to what you owe); job stability; savings history and the appraised value of the home you’re looking to purchase. They try and calculate what your monthly debt will be (mortgage, utilities, credit cards, etc.)
If at all possible, keep your and your husband’s name on the loan. If your brother has an iffy credit history or gets sued, then his liens would attach to your home. See what you can get done with just you and your husband. Talk to your bank and get “prequalified.” They’ll let you know how much loan you qualify for based on your credit and income. It won’t be an actual qualification until you submit a formal loan application and your employment and deposits are verified. Good luck!
