Reasons why picking one income over the other may be advantageous when you only want one person on the loan:
1) Credit mid-score for one of you is substantially higher and crosses a lender threshold for loan pricing adjustment.
2) Higher income produces a lower DTI ratio that crosses a lender threshold for pricing adjustment.
3) One income has consistent bonus and/or overtime pay that stretches for at least 2 years and produces a lower DTI ratio.
Regarding one or both spouses on the loan:
A lender would prefer to have both of you on the loan because that makes them more confident that someone will pay the mortgage - but I have never heard of a lender offering a benefit to do so. The only benefit of doing this as a buyer would be to lower DTI. Then again, if one of the spouseâ€™s mid-scores is low there may be an overall negative effect.
Note that if both spouses are on the loan, both must be on title; however, you can have only one spouse on the loan with both spouses on title.
You may want to ask this same question to a Tax and/or Estate Planning specialist.
If you have questions on the loan qualifiction process, you are welcome to contact me.
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