Should you apply for a mortgage solo if your spouse has bad credit?
When there's a huge gap between your (strong) credit score and your spouse's, one solution could be to apply for a mortgage on your own rather than apply jointly with your spouse. This will only work, though, if you earn enough money to cover your housing costs on your own.
In addition to credit scores, lenders will look at your income to see if it's high enough to qualify for the loan you're seeking. If your income isn't high enough to snag that mortgage, and you need your spouse's income factored into the equation, then you'll have to apply for that loan jointly. That's when your spouse's poor credit could be an issue.
Unfortunately, you can't have it both ways. You can't count your spouse's income on your application, but not their credit score.
How to help your spouse's credit improve
If you have a spouse whose credit needs work, it could pay to bring that number up and then apply for a home loan. First, have your spouse get a copy of their credit report to see what it looks like. If there are errors on that report that work against your spouse, correcting them could boost their score quickly.
Next, see why your spouse's score is so low. Is it because of a late payment history? Too much credit card debt? If there are delinquencies on your spouse's credit record, it could help to get current on those payments, and then pay on time from that point onward. Similarly, paying off a large chunk of existing debt could help your spouse's score improve.
In many cases, applying for a mortgage along with a spouse puts you at an advantage -- namely, you'll have two sets of income to present to lenders. But the flipside is that you'll both need good credit to snag an affordable mortgage rate. If your spouse's credit score is poor, it could prove problematic. Figure out a backup plan, whether it's applying for a mortgage on your own or taking steps to bring your spouse's score up quickly before submitting your application.
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