Mortgage / Credit / Marriage...

[emount]

I am considering buying a house in approximately 2 years. I have a very favorable credit history; my fiancee, however, is contemplating bankruptcy. Obviously, we would probably want to wait to get married until I close on a property sometime in the future. My question... when we get married, will the lending agency be notified? If so, will they be able to a) back out somehow, or b) increase my rate as a result?

 

[Tracey]

No, no, no. They only get to change the terms if you change title by adding hubby to the deed. Even that might not be considered a 'sale.'

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.

 

[emount]

Tracey,
Thanks for the reply; that's good to know. If my fiancee does file chapter 7, it'll be cleared from her record in 7 years. In all likelihood, we won't be ready to move again before that... however, when a lender looks at your spouse's credit history, how much weight is it given if you are the only one who would appear on the deed?

Thanks again,
- Eldridge

 

[Tracey]

Significant. The bank will assume she'll get into financial trouble and you'll have to use some of your income to bail her out, reducing the money you have available to pay the mortgage.

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.