Getting approved for a loan to buy a house is not always the simplest and fastest task to accomplish, and if you are married, you have the choice between applying for a mortgage with your spouse or on your own. While most married couples will apply together, many do not, and here are two good things to evaluate as you decide which option is right for you as you compare options for mortgages.
Consider the credit scores of each person
One factor that greatly affects your ability to even qualify for a loan is your credit score, and that is why this is the first thing to consider as you try to decide whether to file together or alone. What is your credit score? And what is your spouse's credit score? If you both have great scores, applying together is likely the better option when you need a mortgage. Having two people with great credit scores will make your approval easier with any lender.
If one of you has bad credit, though, it may be better to apply individually for a loan. In this case, the spouse with poor credit could cause problems in the mortgage-lending process. The lender might deny the loan due to the low credit score of the one spouse, so having just the one spouse with good credit apply might improve the odds of getting approved.
Compare the income individually and jointly
The second huge factor to consider is the income you each have. The amount of income you have will affect your eligibility for a loan and the loan amount you qualify for. Therefore, considering both spouse's credit is vital, but factoring in their incomes is also vital. If you add your incomes together, you would have more income to use to qualify for a larger loan amount.
This is the main reason couples apply jointly in many cases, as it helps them open up their options for buying more expensive homes. The downside of applying individually when married is that the lender will only consider the income of the person who applied instead of adding up the incomes of both spouses.
If you are not sure which option you should use, talk to a loan officer. A loan officer can help you understand more about the options you have and help you determine the best strategy for your situation. Call today to find out more information about mortgage loans.
Share30 December 2019
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