EveryHome Realtors: What If My Spouse’s Credit Score is Too Low?

Let’s say, for the sake of argument, that your credit score is a sparkly 790. And your spouse’s? 620. While 620 isn’t out of the question for purchasing a home, it can definitely negatively impact your rate and other fees. Plus, it can lower your overall approval amount. And unfortunately, lenders base your mortgage amount and rate on the lesser of the two credit scores.

So what are your options? Perhaps the most drastic option is for the spouse with the better credit score to apply for a mortgage on their own. Both people can still be homeowners and listed on the home’s title, but the mortgage will only reflect one name. However, be sure to consider that the debt-to-income ratio is an important component of qualifying for a mortgage. In other words, the qualifying spouse must have a high enough income.

  Another option would be to rehabilitate your spouse’s credit by paying bills diligently on time and in full every month, or by seeking out a credit repair company. Credit repair companies are able to fix any credit-report errors, eliminate disputed accounts, and provide direction for clients looking to boost their scores fast. (Pssst…we love Credit Blueprint of King of Prussia)