Home Buying in 28277>Question Details

Soxfan1173, Home Buyer in 28277

Does it hurt my credit to not be listed as a co-borrower on our loan? My husband and I both have excellent

Asked by Soxfan1173, 28277 Fri Jun 12, 2009

credit. We purchased our first home 11yrs ago when we were both working. I'm now a stay-at-home mom and have not been listed on the loan application for our new home as a co-borrower. Does this not hurt my score for the future?

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Hi Soxfan1173,
Great question ! If you are not on the loan, you are not building your credit. Women in the past were always not on the loan now it is best for both parties to build credit together. Remember never miss or have a payment on the house late if the payment is due on the first have the payment arrive before the due date. This will help build better credit and a higher credit scores.

Judy Osborne
Osborne Realty
0 votes Thank Flag Link Fri Jun 12, 2009
I would agree with Bob. It won't hurt your credit not to be on the loan, but it would probably help your credit if the payments are made in a timely manner. Even if you are not listed as a co-borrower, most lenders will require you to at least sign the Deed of Trust since you have the right of survivorship on the loan.

You do need to be named on several lines of credit to keep up your score. The interesting thing in recent years is that your score is partially based on how much you owe in relationship to how much you are qualified to owe. That means that it is better to have 3 or more credit lines with all of them owing less than 45% of the maximum than to have to have 3 lines but all of the money owed on 1 of the credit lines so that the percentage is over 45%. They used to tell you to consolidate all of your credit lines into one large one. This is not longer a good idea.

I am beginning to believe that when you purchase a home, if you have enough equity to get an additional equity credit line, even if you never use it, is a good idea to get one. It is there as a back up.

Congratulations on being a stay-at-home mom. There is no better or more fulfilling job.

Sara Rich
Rich Properties
0 votes Thank Flag Link Fri Jun 12, 2009
good afternoon........assuming your credit is good already.......it will not hurt you not being on the loan....being on the loan with a good pay history would most likely raise your score, be sure that you have sufficient credit lines to maintain your score......at least three is recommended.laslty......you don't have to work and generate income to be on the mortgage with your husband.i hope that helps.bob mcclure- success mortgage partners- plymouth, michigan.....
0 votes Thank Flag Link Fri Jun 12, 2009
Yes It affects your credit by not showing you as a responsible borrower on a major loan.
0 votes Thank Flag Link Fri Jun 12, 2009
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