What credit card info is needed for buying a house?
I’m a stay-at-home mom with a large credit card balance. I have no outside income. My husband may be taking a new job which will require us to move. My credit card debt is in my name only, and my husband does not know of it. I was wondering if at any point in buying our new house if my own personal credit card debt would even come up, since only his income is an issue.
July 5th, 2010 at 4:46 pm
If you name is on the title, the mortgage company will probably pull a credit report on you too, since they would technically be lending to both of you.
July 5th, 2010 at 4:52 pm
Since you have no income and you have your own debt you may affect the loan negatively. I would just have your husband as the only person on the loan and tell him since you have no income there is no reason you should be on the loan. This is done all the time in these types of situations. You can still be on the title to the new home and you will have the same rights to the property, but simply not be on the loan. This is done often too when one spouse has better credit than the other. Best of luck to you.
Ps: As long as you are not listed on the loan as the borrower or co-borrower, you can still be on title since you are married and the lender will not obtain a credit report on you.
July 5th, 2010 at 5:04 pm
Buying a home is a lot more than just a credit card. Proof of good income and credit is the name of the game.
July 5th, 2010 at 5:29 pm
It depends on what state you live in, some states require that spouses be equally responsible for all bills, this would include credit card bills, It will show up on your credit report when he goes to apply for credit or a loan.
July 5th, 2010 at 6:02 pm
As a Mortgage Advisor/Loan Officer and Realtor I will tell you that since your income is null then yes your credit card can impact the loan IF YOU ARE ON THE NOTE. It impacts the amount you can borrow because credit cards are a liability and liabilities outstanding affect debt ratio.
If your scores are HIGH (700+) then it is not necessarily an issue. If you just dont want HIM to know of your credit card debt then you better stay off the loan/note but I will add to this that you both are married and marriage is a 50/50 share and a 110/110 input always – dont hide stuff from one another and I say this with experiece too after a failed marriage.
If you do go onto the loan/note then at closing he will definately see the credit card info IF HE READS THE APPLICATION THAT HE SIGNS. Or maybe if he just signs his name he will never be aware – however it is a risk either way that he finds out depending on credit scores, debt ratio, and even the program that you guys decide to go with.
If you have further questions, comments or concerns feel free to contact me with my numbers in my website as I will be glad to talk with you personally and if I can assist you with your mortgage I will let you know as I am only licensed in about a dozen states – mostly East Coast. Best Of Wishes!
July 5th, 2010 at 6:51 pm
If you have a large credit card balance and your husband doesn’t know about it, the balance is ticking down on the time left in your marriage. You cannot be in a marriage where one person is responsible for the other and hide those things. The longer you wait, the worse it will be. Just tell him and prepare to make some drastic changes.
July 5th, 2010 at 7:40 pm
Yes, your credit card balance will show up as a debit owed if you want your name to be on the house. If the home you are buying is not going to be jointly (with you & your husband’s name) then a credit check on your background would not be needed & he will not know about your credit card. I think you should talk to your husband & tell him of the credit card before it gets out of hand & he finds out about it on his own. I know a couple that got divorced over credit card debt that he was not aware of. Try to find a way to pay it off or just be honest about it. Good luck.
July 5th, 2010 at 8:37 pm
Unless you plan on being on the title to the home there is no reason for it to. The mortage company, however, may require it if file joint tax returns.
July 5th, 2010 at 9:05 pm
I know you did not ask for this answer directly, but I hope you don’t take offense if I mention that it is more important for you to build a home for your family rather than owning a house. You would expect the same from him, I think. Honesty is the foundation for the home, be that home a house, or an apartment, or a pup tent. I am still learning this important fact after 21 years of marriage. Learn it early, for the success of your relationship.
July 5th, 2010 at 9:25 pm
First of all, be honest to your husband, he deserve to know. It is difficult but this will avoid you from more trouble in the future. You would expect him to be honest to you as well, correct ? If you are buying a home under his name only, they will only pull his credit report, but if you are buying with both names, your credit will be pulled and it will show all of your credit. It is best to pay off your credit before you put yourself into more debt. Read a book written by Dave Ramsey, my husband and I was in so much debt, but paid it all off after we read his book. Everything is possible, but you have to change your lifestyle, too, and it’s for the best.