TracyLynn,

Congrats on your upcoming home purchase and wedding! You have an few months ahead.

Take a look at the IRS site and see if it find some answers to your questions. A call to your tax adviser would also be a good idea.

http://www.irs.gov/newsroom/article/0,,id=187935,00.html

It would be best to ask this question of your mortgage rep. If you feel that he/she is not doing what is in your best interest maybe you should talk to your bank's mortgage rep for the answer.

You most certainly need tax and financial advise here ... not real estate advice. Only your tax-preparer would know how this needs to be handled.

For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer

This is partly some of the answers you can find at the web reference sited in both of my responses

There's a whole lot of stuff going on in your question Tracylynn. First you and your new spouse need to find out whether or not you both qualify (outside of financial conditions) for the firstime homebuyers credit...then, I am unclear as to whether or not you knew there were prorations above the income limits (up to $95,000 single/$170,000 married) before the credit becomes zero. In addition you should consult with a tax advisor regarding your filing status for next year after you become married in regards to this credit...it is not a requirement to file as married filing jointly although that usually gets the best return. I hope this helps some..and congrats on your marriage !!