Whether you live in a community property or common-law state, you have the option to leave your spouse off the mortgage. Let’s take a look at some reasons it might make sense to apply for the mortgage alone. Lenders want to make sure they’re lending to people who can repay what they borrow. When you apply for a home loan with your spouse, lenders look at the lowest credit score between the two of you; being married doesn’t mean they’ll average the scores.Your Credit Scores
If your spouse’s credit score is low, it could cause a few problems. First, it could prevent you from getting the loan at all. Most lenders look for scores of at least 580, so a credit score below that could keep you from qualifying.
Second, your spouse’s low credit score could prevent you from getting the best interest rate. The higher the credit score, the more likely you are to get a better interest rate. If your spouse’s credit score is significantly lower than yours, you may want to consider leaving your spouse off the loan to make sure you can get the best loan terms possible.
Income
When you fill out a mortgage application, you’ll be asked to prove your source of income. In most cases, this means providing things like pay stubs and W-2s. If your spouse is newly self-employed or hasn’t had a stable source of income for the last two years, they might have a difficult time qualifying for a loan.
If your spouse can’t prove income, there’s not much benefit to having them on the loan. If they lack provable income but have debt, they may throw off your debt-to-income ratio, which could keep you from qualifying.
Your Spouse’s Bank Accounts
When you apply for a mortgage, you need to show that you have enough funds to cover things like your down payment and closing costs. If you apply for the loan without your spouse, you won’t be able to use assets that are in your spouse’s name only to apply for the loan.
