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SHould Spouse be on Mortgage refinance to build more credit from 2013 BK? or no need


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Hi!  My wife and I are refinancing our house to lock in the 2.35 rate.  She has 850 score and perfect credit and makes the Mula$$  Me, I make 1/2 that, did a personal BK in 2013 scores only about 680 and only $3K in debt with several cards and perfect history for the past 5 years.  We are both on the Deed.  Should I bother putting myself on the mortgage with her?  We are only doing a 15year and her income is sufficient to qualify so thats no worry.

 

Would it really help the Fico score much being on it?  Our previous mortgage is a flawless payment history (which we are both on)

 

 

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Do you have any other installment accounts besides the current mortgage on your report?

 

If no, approximately what percent of the original loan amount of the mortgage is the current mortgage balance?

 

Separately, if you set aside score impact, having an open mortgage with a positive payment history will be an asset to your profile.

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I have no other installment loans.  Just 9 credit cards in good standing and only a balance on three of them all in good standing.  The mortgage we had ben paying on is perfect payment history for the past 14 years.  mortgage was $130K and now only $110K. 

 

It's been with PenFed  but the current rate is from my wifes CU  but unfortunately they won't put me on the mortgage because her credit union I had a separate account with and iib.

 

I'm trying to figure out if I REALLY need the mortgage  history to continue to build credit or not.  

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In my experience, a mortgage applied for jointly will price off the lower "middle score" of the two applicants.  If that's the case here, then I expect a joint application will reprice significantly higher.

 

3 hours ago, Why Chat said:

I doubt very much that any lender would allow a mortgage loan without BOTH your signatures. It would be a serious title problem if anything happened. 

 

I don't think a mortgage company can restrict how the property is titled so long as their lien is recorded.  The presence of a titled spouse won't add any restrictions to foreclosure options.  A surviving spouse not listed on the mortgage who accedes to ownership after death of the mortgage holder has the right to continue payments under the existing mortgage and/or seek foreclosure remedies.

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When we bought the Mud Hut we were moving 2,000 miles and TAD was starting a new job on the other side.

 

The underwriter was getting annoying with the things she wanted from his new employer so we solved that by removing his income from the application (therefore, nothing about the new job needed to be documented).

 

IIRC, they also ignored his credit (which is also perfect, so it didn't matter).  <-- Double check with your mortgage company to see if that's how it would work here.

 

____

 

Separately, you absolutely can have the property titled in both names and have just one person on the mortgage, assuming of course that one person qualifies alone.

 

 

Edited by cv91915
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On 3/26/2021 at 5:30 PM, hdporter said:

In my experience, a mortgage applied for jointly will price off the lower "middle score" of the two applicants.  If that's the case here, then I expect a joint application will reprice significantly higher.

 

I don't think a mortgage company can restrict how the property is titled so long as their lien is recorded.  The presence of a titled spouse won't add any restrictions to foreclosure options.  A surviving spouse not listed on the mortgage who accedes to ownership after death of the mortgage holder has the right to continue payments under the existing mortgage and/or seek foreclosure remedies.

 

Friday appears to have been a bad "reading comprehension day" for me.  Sounds like OP should exclude himself from the application ... having the lower score, the mortgage will likely price off of your scores rather than spouses on a joint app, likely increasing your rate.

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  • 2 weeks later...

In the end I excluded myself.  My lower score wouldn't have mattered due to the value of the loan versus the value of the home.  (it was only a third).  My wifes credit union stated the underwriters couldn't place me on the loan due to my causing them a loss yeas ago.  Their rate was better than Penfed and fees just about the same.  We have used Penfed for the past 20 years on mortgages and they were always awesome to deal with and I like the fact they maintained their own mortgage.  My wifes Credit Union maintains their own mortgages if they premium 
(less risk, which it is due to her excellent credit)

 

We'll see what happens Credit score wise ad such down the road without being on the mortgage.  Takes almost 90 days to close ion the refinance

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  • 2 months later...
On 4/10/2021 at 3:59 AM, alexthegreat said:

 

 

We'll see what happens Credit score wise ad such down the road without being on the mortgage.  Takes almost 90 days to close ion the refinance

update?

 

FWIW I have no open mortgage or installment reporting and scores over 800. I think you did the right thing.

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