Should my spouse and I both be on the mortgage application?

Question #100 from HOW TO GET A MORTGAGE DURING & AFTER THE SUBPRIME CRISIS

Answer: It depends on the strengths and weaknesses of each spouse.

The Real Deal: When your mortgage application is taken, Lisa Loan Officer will look at the strengths and weaknesses of each spouse. As an example, Kenny and Karen apply, Kenny’s credit is 750 and Karen's credit is 615. Lisa would probably try to approve the application with only Kenny on it. But, what if Kenny’s income is not sufficient enough to close the deal? Lisa would put both on the application and move forward.

Mike and Mary apply for a mortgage. Mike filed Chapter 7 bankruptcy years ago after he lost his job and it was just discharged 18 months ago. Mary is a goodie-two-shoes and very strong financially with superlative credit. Lisa would probably move ahead with only Mary on the application. In fact, she may not be able to use Mike in any capacity with his recent bankruptcy.
James and Joanne apply. Both are squeaky clean, with great credit, but both have low income. In this case they need each other to qualify, purely based on income. Lisa would probably put both on the application.

There are many different scenarios and reasons why Lisa would want both spouses or just one on the application. Each mortgage application must fit into the specified underwriting guidelines and stand on its own merits.

The Bottom Line: Whichever way gets you the best deal determines who goes on the mortgage.

Copyright by Kirk Charles, 2009. Please do not reprint or redistribute without written consent of Kirk Charles.