If your partner has bad credit and the two of you have decided to buy a home, it may be possible, but may not be the best course of action for your first big purchase together.
In terms of credit score, you are the Eddie van Halen of the world: you pay all of your bills on time, you work hard to earn more and so you earn more, thus, save more. A true rock star! Your partner? Eh. Not so much. Maybe they were too lax on their bills and debt earlier in life and now suffer those consequences. What’s a serious couple to do in this situation?
Understand why the credit score is low
Before you plead to your lender for that mortgage approval, you have to understand why your partner’s score is terrible. Buying a home should not be done simply because society demands it, it should be done because you and your partner want it. Once you understand why it is bad, you can work on fixing it. Once
Take the mortgage under your name
If you truly want a house now, you can always apply for the loan under your name only. Before you take this route, make sure that your finances and budget are ready for this commitment. Thinking of worst-case scenarios are often avoided by most people, but it is important to remember that it is your name on the dotted line and will be responsible for getting the bank its money back.
Before you and your partner commit to any of these options, you have to be one-hundred percent sure that this is the best course of action right now. Contact Dean Rathbun when it comes time to finding the perfect plan of action to buy your home. We are happy to help you!