Posted on: 19th Nov, 2012 01:08 am
I was just curious if you guys might know how this situation will impact my credit score. I have a spotless report with a score in the mid 700s. My girlfriend and I are buying a house together currently. We are already pre-approved for the mortgage, but we haven't closed yet. I currently own my home and we are turning it into a rental property. Any idea how adding this second joint mortgage will report to my credit or how it may effect my score? Her and I can afford the home without issue. I just don't want to see my credit score slip too far down from where it is. And if it does, any idea how long it will take for it to climb back up with on time history?
hi cavier,
taking out a second mortgage will have an affect on your dti ratio. it will increase your dti ratio. you scores may get lowered by few points but once you start paying the mortgage on time, your scores will rise.
take care
taking out a second mortgage will have an affect on your dti ratio. it will increase your dti ratio. you scores may get lowered by few points but once you start paying the mortgage on time, your scores will rise.
take care
Hi Cavier,
I agree with Sara. Initially you may find that your scores are hurt by few points but with time, the scores will improve. You can even check out the given page in order to know various other steps to improve your score: http://www.mortgagefit.com/credit-rating/credit-repair.html .
Thanks
I agree with Sara. Initially you may find that your scores are hurt by few points but with time, the scores will improve. You can even check out the given page in order to know various other steps to improve your score: http://www.mortgagefit.com/credit-rating/credit-repair.html .
Thanks
If you have adequate equity in your original mortgage, then only you can take out a second mortgage loan. Once you take out a second mortgage loan, your equity gets reduced. This affects your DTI ratio adversely.