Posted on: 20th Dec, 2007 12:39 pm
My husband and I are wanting to buy a single family home closer to where both of us work. We currently live in an investment property that I bought when I was single, a duplex, and that I intend to keep as a rental when we buy our new home together. The duplex mortgage and deed is in my name only. My husbands credit score is better than mine (thanks to an ex who knew my SSN and mothers maiden name), so we'd prefer to apply for the new mortgage in his name to qualify for a better rate. His score is Mid-700's, mine is Mid-600's. The problem is, he doesn't make enough money to apply on his own for the loan amount we would need, and I make way more money than him. If we co-apply, lenders force me to be primary because of my income, and therefore use my credit score to determine the rate. Is it an option, or would it even help if it was, for me to serve as a guarantor instead of a co-signer? My income is high enough for me to qualify for a loan by myself, just not with the best rate because of the score... Do they raise a rate based on a guarantor's score the same way they would if I was co-applying?
hi erinaadkins,
welcome to this forum.
i think as your husband's income is lesser than yours, it is better not to refinance now. because, if you become the co-signer, after that also, your score will be considered for the loan. so i think it is better if you wait a bit and make regular payments. so that within very short time your score will be high and you can apply for refinance and be approved for a lower interest rate.
let's see what the other community members to say regarding this.
thanks,
larry
welcome to this forum.
i think as your husband's income is lesser than yours, it is better not to refinance now. because, if you become the co-signer, after that also, your score will be considered for the loan. so i think it is better if you wait a bit and make regular payments. so that within very short time your score will be high and you can apply for refinance and be approved for a lower interest rate.
let's see what the other community members to say regarding this.
thanks,
larry
We aren't looking to refinance, we want to buy a new home, but keep my rental property. (I have no lates on that loan for 2 years I've had it). We are currently commuting a combined total of 750 miles a week by living in my duplex, so we want to buy closer to work.
Hi erinaadkins,
I think grantor's score will not be considered when one is applying for mortgage. Grantor will help only if the primary debtor defaults on the mortgage. I think it is better if you consult with a real estate agent regarding this.
Thanks,
Larry
I think grantor's score will not be considered when one is applying for mortgage. Grantor will help only if the primary debtor defaults on the mortgage. I think it is better if you consult with a real estate agent regarding this.
Thanks,
Larry