If you have great credit, you may be able to purchase a house, but that doesn’t mean it’s the best idea–especially if your partner’s credit score is less than stellar.
Imagine the following: you’re a financial rock star. You’ve always paid all of your bills on time and you’ve always worked hard to save money. Your credit score happens to reflect your savvy money-management skills, and you can proudly boast that you are a member of the 700+ credit score club; you are the greenest light for mortgage lenders. Your partner? Not so much. They may have their finances in order, but bad decisions and tough circumstances earlier in their life may have damaged their credit score and it may be pretty bad. If your relationship is ready for the next level and a house is on the horizon, but your partner’s credit score is bad, here are some tips on how to get a mortgage.
- Get That Credit Score Up
The best way to get your credit score up is to start making all future payment on time and in full. You can also keep your credit utilization ratio low (meaning don’t run a $499 balance on $500 of credit, even if you pay off that balance in full every month).
- Make the Mortgage Your Own
If you want to purchase a house now, you always have the option of making the mortgage your own. Before choosing this path, make sure that you’ll be able to pay the monthly mortgage on your own. While it may be glum to think about your partner and you separating, it is your signature on the dotted line.
If you’re ready to talk to a mortgage lender about becoming a homeowner, contact me, Andraya Coulter. I serve the Bay Area and the entire states of California and Texas with quality home loans and dedicated service. I’m here to be your partner as you buy your first home. Call me today!