Credit Bad
What should we do when buying a home if I have bad credit but fiance has excellent credit?
My fiance and I are looking at buying our first home. I made mistakes when i was younger with my credit and now have bad credit. I have worked out payment plans with my credit card companies and am working to repair my credit; however my fiance and I want to buy a house. He has excellent credit. What is the best way to go about this. We both are newly out of graduate school and have recently started jobs with modest incomes, but I make a little more than he does. Would it be better for us to apply for a home loan together or for him to apply without me so that my credit is not factored in? Thanks.
Since you are not married yet, then he buys the home in his name only. Many states are dower states. The day you get married and spend one night in the home you will have joint tenants with rights of survivorship. By buying the home in just his name you will have to step down in home size or get an interest only note until your credit has been scrubbed clean for 2 years. Then you can refinance the loan or step up in home together. When that time comes if you have not married then have the home titled tenants in common. This will protect each of you from the untimely death of either one of you and the possibility of the estate coming after all. I have seen this happen.
Good Luck to you now and in your futures together.