Credit scores and mortgage applications - my credit score is good 750 , my husbands is not great 620 ish

Asked by Aspen19128, Cherry Hill, NJ Wed Jan 30, 2013

When we apply for a mortgage with both our names on it, how are the two scores reconciled? My score is good, well over 750, my husbands credit is not as good, somewhere in the low 600s. Do they do a simple average to determine the overall credit score or do they weight them one way or another (my income is higher, I pay the majority of our bills, etc.)? Just wondering how his score may hurt our chances. Thanks.

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Aspen19128’s answer
Aspen19128, Both Buyer And Seller, Cherry Hill, NJ
Thu Jan 31, 2013
Thanks, all, I did get the answer I needed - it basically doesn't matter how high mine is, it's the low (or middle of the low) they use. We're not yet ready to start looking at homes, but it's good to know we can discuss options with our bank and that I can get the loan in just my name.
2 votes
Lorraine Sil…, Agent, Marlton, NJ
Thu Jan 31, 2013
Your score is condsidered excellent, your husbads's needs to be 640 for an FHA mortage but it is only 20 points away and a good mortage representative can help you raise his score by 20 points in as little as 30 days. I would caution you about using a credit counselor because he is so close to the 640. If I can be of any help please let me know. Lorraine Silverman, Prudential Fox & Roach Realtors Malrton, NJ 08053
2 votes
Kimberly Tho…, Agent, Voorhees, NJ
Wed Jan 30, 2013
Hello Aspen19128,
You have gotten some good answers so far. Right now, most lenders are looking for a minimum 640 middle score to even offer a loan option, so your husband's score is a little bit of a hurdle, but not an outright roadblock to homeownership. Your loan officer will pull a merged credit report for you and your husband. They will offer rates based on the lower middle score so a score of 620 may be rejected and if it's only at the minimum acceptable score of 640, you won't be offered the best rates. Also, be aware that if you are pulling your own credit reports with scores, you may not know your true credit scores, as lenders see them. The lender's report will usually show scores a bit lower than what you see when you pull your own. That said, the best place to begin a home search is by having your credit reports pulled by a loan officer. I work with loan officers who can give you advice and options. Your husband may be able to do some things to raise his score quickly; you may be able to apply for a loan on just your credit and income, or if you can qualify as a first-time buyer - there is a program available in NJ that accepts a 620 middle score!

Knowledge is power; so if you'd like the name of a few good loan officers, you can begin to get the knowledge that you need to meet your goal of homeownership. Shoot me an email at kim@kimcanhelp.com or call me at 856-308-5989, and I'll be happy to forward you a list of lenders.
If you're not currently working with an agent, I'd also love to help you with your home search when you're ready. See my profile at : http//www.activerain.com/voorheesbroker

Best wishes!

Kim

Kimberly Thomas, Broker-Associate
Brown & Pope Realtors
2105 Voorhees Town Center
Voorhees, NJ 08043
856-308-5989
kim@kimcanhelp.com
http://www.activerain.com/voorheesbroker
2 votes
, ,
Wed Jan 30, 2013
Aspen, when qualifying for a mortgage the lowest middle score of all borrowers is used to determine interest rates & program eligibility. It's not averaged, it's just the lowest middle score of everyone on the loan. If you are able to qualify for the price of the homes you are interested in on your income alone, you would have better options & lower interest rates vs. if you were to add your husband to the application. I'd recommend you speak with a loan officer to determine what you could qualify for on your own & what you could qualify for if both you and your husband were to go on the loan so you can compare the differences. If you'd like I'd be happy to help you compare and also look over your husband's credit report to determine what ways he can improve his credit score.

Shane Milne | Lending in all 50 states | NMLS #81195
2 votes
Deborah Choj…, Agent, Cherry Hill, NJ
Wed Jan 30, 2013
Hi! If your husbands credit score is 620 there is hope! He only needs a 640 to qualify. Have him pay off small credit cards and pay off any collection accounts. If you are ready to buy now and your income is high enough you can purchase in your name only. Your hubby can still go on the deed. P,ease contact me, I would be happy to help you get this done!
Deb Chojnacki, Realtor
Engel Vickery & Catalani Realtors
Cell: 609-828-1760
2 votes
, ,
Wed Jan 30, 2013
Good Evening Aspen: If I may suggest options to have your husband
increase his credit score. It is not as difficult as you may think. Call
First Prestige Mortgage Services, Inc you would be amazed
on the results. 973-744-8300 . No worries everything can work out.
2 votes
Elisa Dewees, Agent, Cherry Hill, NJ
Wed Jan 30, 2013
His score could hurt for sure. I would check with a lender as each case is different, they check your scores, ratios, whether you have student loans, etc. There is no charge to get pre-qualfied for a loan so do so and you will know for sure. You may qualify to take out the loan just in your name.
I recommend starting with a local bank and making sure you use a reputable lender. You do not want any disappointments or surprises by going on what a lender tells you that they cannot back up by giving you a mortgage.
I live in Cherry Hill and could recommend a local lender to you if you'd like, just email me.

You are making such a smart move by getting your finances in place before looking for home!
2 votes
Larry Sarlo, Agent, North Wildwood, NJ
Wed Jan 30, 2013
A mortgage Broker will use your score and your husbands scores. Many times there are items on your credit that can change your scores by 20-40 points. You should talk with a mortgage professional.

However there are mortgages out there with lower 600's that will qualify.

Joe Cordova is a licensed Mortgage broker and co owner of Evesham Mortgage
Here is a video about preapproval and credit scores. Kind of entertaining also... http://youtu.be/0ee9y6O3haA

Call Joe and he will help you openly.
Joseph S. Cordova NMLS# 146855
Evesham Mortgage, LLC
22 South Maple Avenue
Marlton, NJ 08053
office: (856) 985-9944 ext. 103
direct fax: (206) 333-0946
cell: (856) 304-2381


If I can be of any other help please feel free to contact me anytime.

Search foreclosures and short sale here: http://www.BuyNJShortSales.com

"Nobody Sells More Real Estate than RE/MAX"

Search the MLS on your phone by Text: In the subject line on your mobile phone- LSAR1 -to number 87778 ... hit send... A GPS feature for listings at your finger tips

Larry Sarlo When you want it Sold Fast!
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609-868-1171 call / text / email 7 days
lsarlo@comcast.net
http://www.larrysarlo.com
2 votes
Dale Susan S…, Agent, Cherry Hill, NJ
Wed Jan 30, 2013
There are many things that will go into the mix to determine if you will qualify for the mortgage. It is best to see a mortgage representative who can sit down with you and go over your husbands credit score as well as the numerous loan options available. I can recommend several professionals in the area who would be glad to sit down with you. Also, I would be glad to meet with you to discuss the whole mortgage process and to help you find a place to call home.
I can be reached via cell at 856 816-1510 or email dale@schwartzhomes.com
Hope this was helpful,
Dale
2 votes
Joe Simone, Agent, Wayne, NJ
Wed Jan 30, 2013
You should contact your mortgage company and they will pull your credit. They should be able to explain how to raise his score while you beginning shopping for a home. He should be able to raise his score 30-50 points and you will be fine.
2 votes
R. Eric Axel…, Agent, Cherry Hill, NJ
Wed Jan 30, 2013
They will go with HIS middle score. I use a VERY respectable and trustworthy mortgage broker. I would love to put you in touch if you will allow me to. He will give you all the options, including not placing your husband on the mortgage if it will bring down your chances.

Also, I live in Haddon Twp and sell homes in Cherry Hill and Philadelphia. I would be honored to speak with you regarding that as well.

Eric Axelson, Associate Broker
Licensed in NJ and PA
Kurfiss Sotheby's International Realty
856.979.5967
axelson@kurfiss.com
2 votes
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