Being married may or may not help a couple qualify for a mortgage. There are many factors that a lender considers when making this determination, including each spouse’s debt, income and credit history. Marriage will not necessarily increase the likelihood of getting a mortgage if either spouse has a negative credit history or excessive debt. On the other hand, two good incomes, positive credit histories, and only a little debt will help a married couple obtain a mortgage. The lender will consider all these factors when making a determination.
A joint mortgage is a mortgage that two or more people share. It is commonly used by married couples, but unmarried people can obtain a joint mortgage as well. Both spouses are responsible for making payments on the joint mortgage. This, however, does not necessarily mean that both spouses have ownership rights to the property. Each spouse must be listed on the deed, which is the document that gives ownership rights.
One of the advantages of a joint mortgage is that the income of both spouses is considered by the lender. Each spouse must have a stable income otherwise the lender may not allow the couple to claim the unstable income source. The total income amount, along with other factors, is one of the tools used to determine the mortgage amount. Typically, if a married couple uses their combined income, they will qualify for a higher mortgage than applying as a sole borrower.
The debt of each spouse also affects whether the couple will qualify for a mortgage and determines the qualifying amount. A lender will review the debt of a couple to determine how much the couple can afford to borrow. Debt includes credit card debt, student loan payments, car payments and any other monthly debts reflected on the credit report of each spouse. The lender will calculate the debt-to-income ratio to help it determine the mortgage amount. Therefore, it is important to have a low debt-to-income ratio.
Each spouse’s creditworthiness can affect the ability to qualify for a mortgage. If one spouse has a negative credit history, this may factor into a lender’s decision to approve a mortgage application, and it may determine the interest rate of the mortgage. In this situation, it may be best for only one spouse to apply for the mortgage. However, if both spouses have a positive credit history and are able to meet the other standards, it is a benefit to apply together.
- Can I Include Spousal Income If the Mortgage Is in My Name Only?
- The Amount of Income Needed for a Mortgage
- Can You Get a Home Loan by Using One Person's Credit Score and Another Person's Income?
- How to Finance a Home if One Spouse Has Bad Credit
- Do You Have to Be Married to Share a Mortgage?
- Does Being Married With a Spouse on the Mortgage Affect FHA Loans?
- The Advantages of Dual Incomes
- Does My Husband's Home Loan Affect My Future Loan?