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co-signing a mortgage

my wife and I are taking joint responsibility of the mortgage on our new home. when we sit down with a lender, how will our interest rates be determined; will it be an averaging of both scores or will one be taken more into account? by TWoods_132_245 from Olathe, Kansas. Aug 16th 2012 Reply


Cody Bellah (cody@communitymortgagekc.com)
#16 ranked lender in Missouri - 71 contributions

There are over 10 different things that will determine and interest rate. Product, term, credit score, escrows, loan to value, purchase or refi, ect. They will take the lower of the 2 credit score between both of you. I work in Overland Park if you would like, I can give you a free consultation and get you going in the right direction. Cody Bellah 816-256-0013

Aug 16th 2012
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,722 contributions

You have 3 scores, your wife has 3 scores.. The rate is determined by taking the lowest middle score of ALL borrowers.. But this is just one aspect of pricing a loan... are you purchasing a single family home, condo, or mobile home.. all 3 have different levels of risk.. so the rate will be affected by property type as well.. How much are you putting down, or what is the Loan to Value... the lower the LTV, the lower the risk for the lender... how are you paid.. Commissions? risky!! Self employed?? Really Risky!!... you probably get the point by now.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Aug 16th 2012
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,930 contributions

All applicants are created equal in all aspects. Lenders look at everyones credit, income, assets, etc. The only item to consider, is that lenders will take the lowest middle credit score of all applicants as your "qualifying score". Your interest rate and loan qualification will be based on that score.

Aug 17th 2012
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Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

Lower of the 2 middle scores. many other factors will help in determining you interest rate.

Aug 17th 2012
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Linda Miller (Linda Miller)
#2 ranked lender in Utah - 566 contributions

As Cody below said - Interest rate is determined by many variables - the type of loan, the loan term, your credit scores, the down payment and your specific short term and long term goals. Interest rate is not the only thing you should be using to make a decision. You need to look at the whole package for your situation and see what is best. Sometimes a higher rate is long term a better loan. Regarding credit score, the lender will take look at the scores from the three different credit bureaus and take the lowest middle scores. I would definitely advise you to contact a local mortgage professional in your area (like Cody). A local professional will be able to answer you questions and guide you so that you make the best decision for you and your family.

Aug 16th 2012
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Korwin Wall (Korwin Wall)
#2 ranked lender in Kansas - 33 contributions

The lender will run a credit report that pulls from three credit bureaus. They will then use the lowest middle score between you and your wife. If one of you has credit issues sometimes it makes since to only use one spouse on the financing but that spouses income will have to be adequate to finance the home.Lots of items can effect down payment and rates. It is best to work with a broker before making an offer on a home. The broker can get you pre-qualified and can help the Realtor structure the contact if there are down payment issues. I am located in Topeka if you would like to call about further questions you can reach me at 785-273-5004 or email at kdwall@kdwallstreet.com

Aug 16th 2012
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Kofi Akpabla (KofiAkpabla)
#23 ranked lender in Connecticut - 37 contributions

As everyone said, the lowest of the 2 mid scores. However, if one of you has a lot better credit than the other, you should consider just using that person on the loan. If the income is enough to qualify with one borrower, you can both be on the deed and depending on what state you are in, will have joint responsibility of the mortgage.

Aug 16th 2012
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Derick Condron (rightstartoregon)
#32 ranked lender in Oregon - 598 contributions

In terms of the credit scores only they will look at the lowest mid credit score for the two of you. So if you are say 650 657 675 and she is 640 652 680, 652 is going to be the score they use

Aug 16th 2012
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,240 contributions

The lowest middle score will be used.

Aug 17th 2012
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Brian Allen (ballen)
#43 ranked lender in Maryland - 191 contributions

The lowest middle score of the two will determined loan program best option is to work with a mortgage professional that has the ability to review your credit before you submit an application this person can provide insight to programs and products that fit our need.

Aug 17th 2012
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