Options - which loan to get ?

Asked by Bobby, Pennsylvania Sun Apr 6, 2008

We are a married couple. My credit score is 767 and my wife's credit score is 664. My annual salary is 104000 a year and her annual salary is 49000. I have no debt except for 600 monthly auto payment and my wife has no debt at all. We are first time home buyers - the houses that we both like are in the ranges from 450000-475000 and we have 30K in savings.

First option is to get the loan just in my name since my credit score is much higher than my wife's - I am not really sure how much loan can I get in that case and what kind of interest rate will that loan have.

Second option is to get the loan with our combined income - I am pretty sure with that we should be able to get a bigger amount loan but since in that case her credit score will come in play too - what kind of interest will that loan have ?

Please advice. Thanks for all your help.

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Ute Ferdig, Agent, Auburn, CA
Mon Apr 7, 2008
Hi Bobby. Sorry you are disappointed nobody had responded to your question. I think the main reason for the lack of response is that it's really difficult to advise you about the specifics in an online forum. Your best bet would really be to connect with a mortgage professional in your area as they'll be able to run you through all your options. I personally think that you'd probably be better off getting the loan in just your name if you can do so as the interest rate will be much better than what it will be if you have to use your wife's score. The problem that I see is that you only have $30,000 down which means that you either have to pay PMI or get a 80/20 first and second loans to avoid PMI. Unfortunately, the interest rate for the second will be significantly higher than for the first. I think that you may not be able to qualify for a house in your desired price range based on only your income because of the overall debt to income ratio. It might work if you did not have the $600 car payment. Again, I would schedule an appointment with a mortgage broker and they can provide you with different loan scenarios fairly quickly. Good luck to you.
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Bobby, Home Buyer, Pennsylvania
Mon Apr 7, 2008
Damn - no answers ??? Calling all mortgage experts !!!
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