• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sonoma County Mortgages

Contact Us About Mortgage Financing

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now

Search Sonoma County Mortgages

  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • About SCM
  • About Scott Sheldon

Primary Sidebar

Sonoma County Mortgages is a part of New American Funding

New American Funding - NMLS #6606

Get Your Latest Rate Quote Now!

How Getting Married Can Halt Your Chances Of Buying A Home

September 22, 2013 by Scott Sheldon

Share on Facebook Share on Twitter Share on Pinterest Share on LinkedIn Share on Email

They popped the question, you said “I do”. Getting married is now officially happening. When you say I do, you’re not just saying I do, to that person, you’re saying I do to all their finances, positive or negative as well. Their finances are, will shape “how” or “if”you can buy that home. Why getting married first may be bad move…

The old pattern of getting married and then settling down, is no longer valid. The dream of attaining homeownership can come to a screeching halt, if would-be buyers don’t plan out their finances in the early stages of their relationship.

Essentials You Must Know About Your Future Spouse Before Tying The Knot

  • *Debt-the single most limiting factor above and beyond anything else is your spouse’s debt. Let’s say, your spouse has student loans, credit cards, an auto loan, and payment obligations. If you’re buying a home, there’s a good chance even if they are not on the loan, their liability obligations will be counted against your qualifying ratios, reducing your ability to qualify for the loan and consummate the house sale. Here’s the deal-depending on the property state, it may or may not be a community property state. If it is a community property state, for example like California, debt of the spouse is automatically joint no matter who is on the loan. Problem solved by buying the house first.
  • Credit Score-if your credit score is 800, and your spouse’s is 620. Lenders always use the lower of the two credit scores, your loan just got really pricey! In fact, if we look at a loan in the amount of $300,000 assuming a 30 year fixed rate mortgage, an individual with an 800 credit score could secure a 4.625% interest rate versus somebody with a 620 credit score, might receive a 5.5% interest rate. Looking at the two interest rates over the long haul side by side, it’s an additional $57,942 more in interest because your spouse has a 620 credit score. That’s $161 per month more in interest. Problem solved by…once again buying the house first.
  • Cash-if your spouse can’t source cash deposits going into their bank account, you both lose. Even if the money is not being used in the house purchase, the mortgage company is still required by federal law to source any deposits. Lesson learned-buy the house first!
  • Loan Type-a diamond in the rough, if you’re using a conventional loan to buy a house when you’re married, and the other spouse is not on the loan, their liabilities will not count against your debt ratios as they otherwise normally would. The culprits loans by the FHA, and VA and the USDA.

Lenders will look at your ability to qualify for the house purchase based on a joint application in most instances unless otherwise requested. By qualifying for the loan prior to getting married, a prudent couple would stand to gain the most benefit by having more options available to them. Jumping in headfirst by getting married does limit the way a lender can qualify a would-be homebuyer.

So if you’re engaged or will be, STOP THERE

Congrats on getting engaged, now go talk to a mortgage lender to see how your financing options can line up. Doing this before you get married can mean the difference between settling down now or settling down years down the road.

If you recently got engaged, and are thinking about buying a house, let’s start the process. Begin by getting a complementary mortgage rate quote for an affordable payment today!

Related Mortgage Advice from Scott Sheldon

  • How To Correctly Pay Off Debt When Getting A Mortgage

    Trying to procure mortgage credit right now? From higher interest rates, to rising house prices…

  • Does Improving Your Credit Score For A Mortgage Pencil Out?
    Does Improving Your Credit Score For A Mortgage Pencil Out?

    Credit is the biggest hot button topic in mortgage lending by far. Most would probably…

  • should you pay off high interest debt when getting a mortgage
    Should you pay off high interest debt first when getting a mortgage?

    How you plan and budget your finances can have a big affect on whether or…

  • Your Deferred Student Loan May Impact Your Mortgage Chances

    The cost of your educational isn't just interest you pay on student loans, no, in…

Filed Under: Mortgage Tips & Advice, Pre-Approval

Get Sonoma County Mortgages News and Updates in Your Inbox

Footer

SCM on Facebook

SonomaCountyMortgages.com

Connect on Facebook

SCM On Instagram

Follow Sonoma County Mortgages on Instagram

Follow on Instagram

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

See Reviews on Zillow

Location & Contact

Sonoma County Mortgages and New American Funding are an Equal Opportunity Housing Lender

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
2455 Bennett Valley Road C107
Santa Rosa, CA 95405
1-707-217-4000
View SCM Map | Email Us!

Map of Sonoma County Mortgages New American Financing Office

View Map on Google

Copyright 2010–2023 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing (Opens in New Window) | Privacy (Opens in New Window)
Terms of Use (Opens in New Window) | Electronic Consent Agreement (Opens in New Window)
Opens in new window Opens an external site Opens an external site in a new window