Are you engaged and planning on buying a home in Vero Beach? Sometimes people ask us how buying a home while engaged differs from buying a home while married. In many cases, there is no difference. In a situation in which one of you has poor credit though, it can complicate things. Legally, an engaged couple is considered two separate individuals. So, if both of you have good credit and both qualify with the lender, you can both be named on the title so that you can both own the home. If one of you has bad credit though, this isn’t the case. Only through marriage can both of you be on the title of the home if one of you has poor credit or doesn’t qualify to be on the loan.
Speak with your lender or mortgage broker to determine if you should wait to add your fiance to the loan or title or if you should both apply for a mortgage together. Lenders will underwrite you individually, so telling a loan officer that you are engaged won’t help your ability to qualify. If your future spouse had poor credit, you will need to leave them out of the process, which means that you will also need to leave their income out of the equation as well.
If you apply as co-borrowers, the lender will underwrite the loan using whichever co-borrower’s credit score is lower. You can always ask the loan officer to consider the loan both ways. It’s possible that two-incomes might be more helpful than a higher credit score. Of course, the reverse is also possible, especially if the person with the poor credit has a score of 620 or below. Now, if you’re not married, the person with the stronger credit can secure a better interest rate, so this can be advantageous in that situation.
We Are Your Indian River County Experts
Please consider our team at Alex MacWilliam Real Estate whether you’re selling your home or looking for a new one. We love helping make people’s dreams come true. Plus, we’re experts in this area. Want to find a place to golf in Vero Beach? Just ask one of our skilled realtors while touring your potential new house! Our realtors will try to answer any questions you might have about amenities you can find nearby. Also, check out our Vero Beach relocation guide.
Feel free to use our online search tool to find Vero Beach real estate from your device now. Plus, while you’re at it, also check out:
- Open houses in Vero Beach
- Featured Vero Beach real estate
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So, if you are considering relocating to Vero Beach, please contact us today. Our real estate team is extremely knowledgeable about the area and can find the perfect home for you. Call us at 772-231-6509 to talk to a Realtor® in Vero Beach, FL today. We can search the MLS and find your dream home.