I would like to apply for a mortgage but I think that I may be declined. Will this hurt my credit rating?

I have OK credit, but my spouse's is poor. Together we only make about 60K a year. What are our odds for a 175K mortgage and will it set us back if we are declined? We will be first time homeowners.

I would like to apply for a mortgage but I think that I may be declined. Will this hurt my credit rating?
Might be a bit dicey, a lot of variables in this however. Go with a mortgage broker, as they can shop around for you and it'll just be the one hard credit inquiry.





My spouse and I were in the same boat a few years back. Her credit was fantastic and mine was a shade iffy. We had a significant down payment ($45K) and made around 60K a year between us.





We were approved for about $110K mortgage at a good rate, but anything more than that wasn't looking good.





Good luck!
Reply:being turned down for a mortgage or anything else doesn't hurt your score that much - you're better off waiting and fixing spouse's credit - it's a lot tougher to get loans now
Reply:It has less to do with your SCORE as much as your CREDIT REPORT.





If you have negative things on your credit REPORT (late pays, collections, repos) that is going to affect your ability to be approved. Clean up all the negative stuff on your credit report. Pay all your debt, and pay all the old debt.





If you have little to put down, that is going to affect your ability to be approved. You need to save a 20% down payment.





If you have no debt, a 20% down payment, and are applying for a 15-year fixed rate mortgage with a payment of no more than 25% of your take home pay, a lender that does manual underwriting will approve you for the best rates available (prime rates)
Reply:Hey, I know this company called Financial Balance they helped us out.
Reply:There will be a temporary hit to the credit rating because of the hard inquiry that will be done. What I would recommend you all do is maybe wait another 6-12 months and work on increasing both of your scores. That way you will have stronger credit scores and will get better interest rates on the mortgage.