Most of the couples tend to jointly apply for mortgage loans. However, what would happen if one of them has a bad credit score? In the case of a joint application, bad credit can pose serious problems. While deciding the interest rate to be charged, the lenders would take into consideration the lowest credit out of the two. So, if your partner has a bad credit score, in that case, you better be prepared for a shock. If either one of you has bad credit, in that case finding the lowest mortgage interest rates would not be the easiest of things to achieve.
You can qualify for a loan with one person
If you have applied jointly, in that case, it is possible to qualify for the loan with only one of you. However, in that case, the one with higher income needs to have a good credit score. As long as this condition is met, you are qualified for the mortgage loan. It needs to be mentioned in this regard that the person with the higher income is regarded to be the primary borrower.
Joint Application can help you get bugger Loans
If both of you apply for a mortgage loan, in that case, the chances of availing a bigger amount are higher, the fact that income generated by both of you can be put together to figure out the debt to income ratio makes it easier. However if one of you has a bad credit score, in that case, things can be a bit complicated.
If one of you has a sufficient amount of income to show in that case, the best thing for you to do is to apply for the loan in his or her name. In such a situation, you might not be able to get your hands on a significant amount of money; however, this is the only option available for you; in the case of a joint mortgage loan application.
If you have decided to apply under one person, even then, you can have the deed under both of your names. It needs to be remembered that mortgage and deed are two separate things. However, the lender will have a certain amount of say in this matter; therefore, you need to check what their policies are in this regard.
Planning for a joint mortgage loan application? You will find many agencies these days who can help you out in getting one. Get in touch with the best in the business for a smooth and professional service.