My wife and I are planning to buy a house and we reached out to a couple of mortgage brokers this week to get pre-approved. Based on my credit (~650), the one broker we have spoken to so far suggested that we put the mortgage in my wife’s name so that we can get the best interest rate: 4.125% with my wife only, or 5.125% with my wife and me on the loan. My wife was able to pre-qualify for the loan amount we were seeking, but it would put her debt-to-income ratio at 49%. My concern is that the high debt-to-income ratio will negatively affect her credit in the long-term. Should I be concerned? Any advice on what we should do?
tl;dr - Mortgage broker suggested that we put a home loan under my wife’s name only which would make her debt-to-income ratio 49%. What do?
p.s. I have been working on improving my credit for the past couple of years. I made a lot of dumb financial decisions when I was a kid and incurred a bunch of collections and late payments that made my score ~550. I paid off all my debt so I have no more open accounts but the result now is that I just look like someone with no credit, hence the 650 score.
Submitted March 23, 2019 at 08:05AM by braidedviking https://ift.tt/2Fpf7Ob
