Your Credit Score, Your Spouse’s Credit Score, & Your Mortgage

Mortgages, Loans and Financing
By Becca Allison

Are you currently in the home buying process? if so then reading up on the impact you and your partner’s credit score has on your mortgage rate will help you in the process of landing the perfect mortgage rate for your family.

You’ve reached tons of milestones in your life. You got your first car, graduated high school, maybe even college, got your first big job, got married, and now it’s time for the next one: you’re ready to buy your first home.

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But just like all those other things you had to accomplish, this is going to come with some hurdles. Don’t worry, that’s why we’re here. is here to help prepare you for all those challenges that could provide unwanted setbacks stopping you from getting the keys to your new home. Things like your credit score can either provide a challenge or an opportunity when it comes to be time to closing the deal, so do you know where you stand?

Credit score and home buying

Your credit score will directly affect the interest rate on your mortgage, the loan you receive on buying your home. This is either great news, if you have a high score, or maybe not so great news if you don’t, because higher credit scores will lower your interest rates and vice versa. With a score of 580 or better, you qualify to apply for a government backed loan from the Federal Housing Administration. And say you have a great score, and still are looking for ways to save money, consider a shorter-term mortgage plan, like the 15-year as opposed to the 30-year, even paying more each month, the amount you pay in interest will be overall lower in the long run.

What if your spouse is unemployed?

So, this is all great and fine, but what happens if the person you are applying for this home with is unemployed or has a bad credit score? That’s the struggle, isn’t it? You decide you want to spend the rest of your life with this person and then all of the sudden finances become even trickier as tying the knot ties you to them financially as well.

Hate to admit it, but your spouse’s bad credit, unemployment, or debt will affect the loan you receive - no matter how good your credit is. The lower your spouse’s score, the higher your interest rate will be. Unemployment won’t necessarily mean you won’t be approved for a loan, your spouse could actually have good credit despite the lack of income, but the issue here comes from a debt-to-income ratio, and how much other debt you’re paying off while applying for this home. So, with only one income, this could hurt your chances on qualifying for more of a loan.

Here’s the catch - you can leave your spouse off from your mortgage. No, don’t go behind their back and buy a home without them, but talk to your spouse and decide if leaving him or her off from your application will be a better financial decision for you both. Leaving your spouse off the mortgage may mean that you have to settle for a smaller loan, leading to a smaller or less-expensive home.

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