I’m sure my situation is not unique and what makes it worse is that i am a real estate paralegal BUT here I go. My fiance and I (we’re in Connecticut) are looking to purchase a home in the next few months. The market for buyers is good here right now. We both work full time and have been for years. He’s got great credit and makes significantly more than I do. Plus my credit is shot due to a previous relationship. It’s so bad that I know I would not be able to apply for a mortgage by myself. My question is – how should we go about this? I’ll obviously be contributing to the mortgage. Should he complete the mortgage application in his name alone? What impact would I have if my name was to be included? We are (HE is) a first time homebuyer so does that come into play? I am aware of some CT first time homebuyer programs… any suggestions would be greatly appreciated! Thanks in advance.
If he makes more money than you there is a good chance you can be on the loan with your bad credit. If not that just do the loan in his name and use stated income if you have to. You should be listed as an owner on the home and for that you do not need to be on the mortgage.
I would get a 30 year fixed loan for sure. And to keep payments down I do like the 30 year interest only fixed. It is interest only for 10 years.
Matt
http://www.diversifiedlender.com/
http://biz.yahoo.com/brn/060909/19463.html
As housing market continues to slump, if you don’t plan to delay your plan, please interview several and pick a good realtor or agent.
Bad ones will talk you into buying the largest property at your credit limit. Good ones will find you a good deal (Sellers are offering discount and incentives now).
Try to stay away from Adjustable Mortgage, because 30 year fix mortgage rate is very low right now. There is no reason to use Adjustable loans except fatter commission for loan agents.
Interests only loans are not good iether. Mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn’t add to the equity to your house. It simply disappear as your pay it. If you want to use interests only loans, might as well rent, especially during market downturn, because housing price won’t appreciate.
Finally, for tax benefits, talk to your CPA or tax accountant. Do not consult finance with realtors or agents. They get commissions when you sign the check!
Good luck!
References :
If he makes more money than you there is a good chance you can be on the loan with your bad credit. If not that just do the loan in his name and use stated income if you have to. You should be listed as an owner on the home and for that you do not need to be on the mortgage.
I would get a 30 year fixed loan for sure. And to keep payments down I do like the 30 year interest only fixed. It is interest only for 10 years.
Matt
http://www.diversifiedlender.com/
References :