What impact does co-applicants credit score have on mortgage rate?
My fiance are getting married in six months. We plan to buy a house together before the wedding.
My credit score is excellent (over 750). Hers is in the good range (around 650-700), but it’s only because she has student loan debt…she’s never missed a payment or been late.
I know I would get a very good interest rate and would qualify for the full amount if I applied for the loan without her on the application. If we applied as co-applicants, would I introduce the risk of us getting a higher interest rate because of her score being a little lower?
If that were the case, does anybody have any recommendations on whether it’s possible to have me as the only name on the mortgage but be able to add her to the title at or after the close?
Thanks!
Congratuations on having good credit and being in a situation to get a mortgage based on your credit/income alone. The fact you can get a mortgage with or without your finacee signing puts you in a very unique situation. Usually most couples need both to sign to qualify for a mortgage.
That said, I absolutely recommend you contact a number of reputable mortgage lenders (ask your friends and family which lenders they’ve used and trust) and see what rates you are offered, with and without your fiancee. Then you can just pick the best the best one! What more could you ask for?
Honestly, based on the numbers you’ve stated, I think you are going to get the best rates anyway (with both on the mortgage), so I don’t think you have to worry.
In regards to putting your fiancé on the mortgage after closing, in most cases you would have to refinance the mortgage in order for that to occur. And to add her to the deed but not the mortgage would require you to deal with your assessor’s office (or county clerk) and you would probably want to get a lawyer to make sure it was done right… it would be a pain. I would not recommend that.
Just find a mortgage professional you trust and compare your options. I think you are going to find that you are in a win-win situation.
