My Husband and i are thinking on buying our first home. we are both first time buyers. However he has great credit and i have bad credit about 610 score. I am working on improving my credit. He was in the military so he’s qualify for the VA Loan. We would like to buy a home in MD (Montgomery or PG Co.) area. What is the best way to go about this? Would it be better for us to apply for a home loan together or for him to apply w/o me? or Do they automatically look at my credit? What are best first time buyers program for our situation? And what are the different types of loans available for especially in the state of MD?
PLEASE HELP!!! ANYONE IN THIS INDUSTRY….REALTOR, BROKER, ETC. AND/OR WITH EXPERIENCE!!!!!! ANY ADVICE OR SUGGESTION IS HIGHLY APPRECIATED!!!!
Best things to do is either just apply for pre approval or get in touch with a realtor. My wife and I did that recently and are now in a beautiful house. You may realize that your credit is not as bad as you think it is. I think a lot of what mortgage companies look for is debt to income ratio. We did not have anything other than a car loan so we were sitting pretty as far as that went. You should be in really good shape with your husband’s VA loan.
They will take your score into account IF you need to use your income as well to qualify for the loan. If he can get a VA loan on his own with his income, then you would be fine.
Most FHA lenders require a 620 score, so, if you weren’t going to buy for a few more months, you might be able to bring your score up a bit so that you could use your income (if you are working) as well.
You should go meet with a lender and ask them the specifics of your case.
We just used my husbands VA loan and it was such an easy process. My hubbys score is 687 though. However the VA doesnt look at just scores alone, they also take in consideration how long you have been employed, your payment history, if you have any judgements then they will almos make impossible to get a loan. My husband is the only one on our mortgage but the title is listed as him being a married a person, this is the way Oklahoma does it.
A VA loan is going to be the best loan program out there. No money down and no monthly mortgage insurance! Your score is not that bad but most lenders have gone to a 620 mid score requirement. The trick here is whether or not your husband can qualify with just his income.
If he needs your income to qualify you will need to have a mortgage banker/broker review your credit to see if there is an option of doing a rapid re-score to bump your scores up by 10 or so points. There are things that can be done to increase credit scores in days not months.