Financing in 80130>Question Details

Laura, Home Buyer in 80130

i have great credit, but my partner's is wounded. how does that affect our borrowing power?

Asked by Laura, 80130 Tue Oct 16, 2007

my credit score is 725, but my partner doesn't even want to checking stating "it's bad." i know we will want to check that before we venture into serious house hunting, but wanted to know if there is anyone out there with more info. thank you!

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Speak with a lender to see if you qualify on your own, to purchase, since you have an excellent credit score, Good luck!
0 votes Thank Flag Link Sun Feb 8, 2015
Great credit score! Talk with a lender. Good luck!
0 votes Thank Flag Link Fri Apr 4, 2014
You might very well qualify with just your credit and income so I would pursue that with a mortgage lender.
0 votes Thank Flag Link Wed Jun 13, 2012
all good answers to your question. Your score alone is sufficient for a conventional loan without most of the current FICO adjustments. a 10% down payment is required for most conventional loans today, but this varies depending on the property, your total creditworthlyness, etc. You might be surprised that you qualify for by yourself. Depending on how bad your partner's credit is, there are still options. It becomes very expensive (in rate or fees) for a credit score under 680.

The good news is FHA is still allowing credit scores down to 620 and doesn't have an adjustment to the rate like conventional.

I would first find out "how bad" it is and then come up with a plan based the facts.

Chad Bergman, e-PRO, CML

Apollo Financial
5347 S. Valentia Way #300
Greenwood Village, CO 80111
Office 303-733-5950 x248
Cell 303-875-2240
e-fax 303-484-7922
Online http://www.MyDenverMortgage.com

Keller Williams Realty
10475 E. Park Meadows Drive, Ste. 550
Littleton, CO 80124
Office: 303-768-9200
Cell: 303-875-2240
E-Fax: 303-484-7922
Online: http://www.MyDenverHouse.com
Web Reference: http://www.ChadBergman.com
0 votes Thank Flag Link Mon Mar 16, 2009
Hi Laura,

It sounds like your best bet would be to talk with a mortgage broker rather than a lender. Because of the potential credit issues, which could or could not be a hinderance depending on the severity, you'll need the flexability of someone who has numerous products to choose from.

If you need help, just give a call or visit us online at http://www.homestarlends.com
0 votes Thank Flag Link Fri Apr 11, 2008
Laura: I would use your score-- you can be on the loan and contract Your partner-- can be quitclaimed-- after you close (his name on the property title). If you need a couple of Mortgage Specialists to speak to--feel free to contact us.
Kathryn Carlson, Licensed Real Estate Broker Owner ,
Bachelor of Science, Realtor, Accredited. Luxury Home Specialist, e-Pro Certified
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Homes and Lifestyles of Colorado
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0 votes Thank Flag Link Fri Apr 11, 2008
Hi Laura, I suggest you buy the home under your name. If your married, your husband wil sign a quitclaim. After you take posession, just add your partner back onto the title. Good luck.
0 votes Thank Flag Link Tue Oct 16, 2007
The first advice i give is to check his score. Its like anything else, there is no way to determine how sick you are till you go to a doctor. Get it checked, then you will be able to legitimately be able to find your cure. Whether it is good or bad it is manageable. You can qualify by yourself in some cases, but it can severly drop your purchase price.

Did you check your score youself, if you did you might want a mortgage broker or bank run an actual mortgage credit report. I have seen all too often people saying they have a 700 score and it comes in at the 600"s. Sometimes it comes in at 800+. The most accurate is a broker report, they always vary from those reports online that you can pull yourself or monitor your credit.

Also if your working with a good broker, when you pull both your scores they can give you alot of advice on what is effecting his or your score. There are some instances where you are able to fix mistakes or pay down a certain credit card to boost your score. This can happen with a rapid rescore. I tell clients this all the time if you know going in you might be on edge go with someone that will help you accomplish this goal. Get referrals and interview your broker wisely asking them all the pertinent questions. Banks will usually approve or deny you, so be cautious when approaching a bank unless you know you are sure to qualify. A bank will always beat a brokers rate, but if they deny you you will have an inquiry and end up in a brokers office anyways.

Good Luck
0 votes Thank Flag Link Tue Oct 16, 2007
I think you can't really get an answer to this without all the details. How much is the property? How much down payment do you have individually? What funds are available jointly?

You might need to bring in the other partner for source of down payment, debt ratio and income. If you don't need the partner for any of those, you might not have to include the partner on the mortgage, and your higher credit score may provide an advantage of a favorable rate.
0 votes Thank Flag Link Tue Oct 16, 2007
Deborah Madey, Real Estate Pro in Brick, NJ
MVP'08
Contact
Just as the previous answer states, you can buy without your partner, however you 'might' not be able to afford as much since the lender will not be able to factor their income.
My experience is this, it's best to get a reality check on both first.
Counsel with your bank and see what they suggest. It might not be as bad as your partner thinks.
Susan Walker
0 votes Thank Flag Link Tue Oct 16, 2007
Laura, depending on you & your partner's goal, you may not even need to have your partner included in the loan process. Your credit alone may be sufficient to purchase the home you want. If that is the case, after the purchase, you can always ad your partner's name to the ownership of the house. On my website I have some articles about buying that may help you. Feel free to check it out and or call/email me if you have other questions.

Bill
Web Reference: http://www.homesellteam.com
0 votes Thank Flag Link Tue Oct 16, 2007
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