Credit scores?
Answers:
Your scores are excellent. Keep them that way. Not only can you get a good mortgage loan but you will also be eligible for some really good grants for the down payment. you don't have to repay grants but you will probably have to live in the house for at least 5 years and it will probably have to have a newer roof and recently painted for the house to qualify. I wouldn't even bring him into the whole loan process. See a real estate agent and a good one will find you a grant.
As for banks, visit many. Go to the one who is a little higher then the lowest and ask them to bet that rate. Then go to the lowest and ask them to beat the other rate. I know someone who got a fixed home rate for 4.9 percent doing that.
As for your boyfriend, he needs to build credit. I have never seen JC Penney's turn down someone with no credit. (I used to work there). You won't believe how many people said their first card was Penneys. They have 90 days no interest sales. Have him spend like 100 dollars on a day with a sale like that and have him pay 40 dollars a month until it is paid off. That way it will show a low balance and him making payments but he won't have to pay interest.
Yes your scores are incredibly good. You would fall into the top 1-2% of all credit scores.
Each bank is a little differant.
Some banks take the score of the primary wage earner, some banks average the to scores, and some only take the lowest score on the application.
It really will depend on how the bank views your overall credit worthieness. And also, the gap between your two incomes is going to be important. I mean are we talking that he makes 2 or 3 times what you do? You may have a problem if thats the case. And also ..just how "bad" his credit is.
I would advise going to a mortgage broker, as they will probably know a bank that is most likely to work with you.
Having zero credit is actually better then having bad credit. A mortgage broker will find a bank that is willing to work with you. Your score is so good that many banks would be thrilled to have be part of the loan. They may be willing to overlook his lack of credit.
Umm, yeah that is an awesome score...the highest is 850 so thats wonderful!! Usually anything over 700 is pretty good.
As far as your boyfriend, they will look @ both of your incomes & credit. So, maybe you might wanna just do the loan in just your name & put his on the title. Then , as for the money that he will contribute, that can be considered "gift money" & the bank will take that into account.
By being on title, your boyfriend is still an owner legally, he is just not getting the credit boost from the home purchase. But you can't sell the house without his consent or anything if he is on the title.
Here is the thing. With your great score, good credit card history and paid car loan, you can get a great rate on a mortgage by yourself. The bad thing is that based on your income, you would be limited to around a $60,000.00 home which in this day and age is not much house.
You have two options, you can get a small starter home while your boyfriend establishes his credit, even if he has to use a secured credit card to do it. Also you can add him as a authorized user on one of your credit cards and once your good pay history shows up on his credit that will help a lot.
Or you can use both your incomes and credit, get a larger home and pay a higher rate for a couple of years while your boyfriend establishes his credit and then refinance at a lower rate.
Either way you go, the impact is not going to be all that great due to your great score and profile. Over the couple of years that it will take to establish your boyfriend credit before you can refinance you may spend a extra $100.00 a month in interest depending on how much home you finance.
Iceman had a great idea, work with a independent mortgage broker, they will find the best bank for your needs.
yours is grat,
teach him how to handle that great money what a team
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