The simplest solution might be to cosign the mortgage, thus ensuring you’re both legally responsible and entitled. However, if you don’t have income, this could affect your borrowing capacity.
Reese said:
The simplest solution might be to cosign the mortgage, thus ensuring you’re both legally responsible and entitled. However, if you don’t have income, this could affect your borrowing capacity.
I’m currently not working, so being on the mortgage might lower our approved amount due to my lack of income.
@Drake
Consider using some of your funds to pay off any outstanding debts, which might improve the loan terms.
Keaton said:
@Drake
Consider using some of your funds to pay off any outstanding debts, which might improve the loan terms.
Most of my payments are for recurring expenses like car insurance and a car lease, which I don’t think can be paid off in advance.
@Drake
You could potentially prepay the entire lease term, which might help reduce your debt-to-income ratio for the loan application process.
Keaton said:
@Drake
You could potentially prepay the entire lease term, which might help reduce your debt-to-income ratio for the loan application process.
That’s a good suggestion. Should I do this before applying for pre-approval?
@Drake
Yes, if possible. It could significantly improve your financial profile for the mortgage application.
You can contribute financially, but without being on the mortgage or deed, you won’t have any legal interest in the property. Make sure at least to get your name on the deed.
Be very cautious about mixing significant finances without legal marriage protections. I’ve seen situations like this go wrong. Always protect your financial interests.
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Peyton said:
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That advice was incorrect. Your clients deserve better guidance.