How Lenders View Credit If Not Married


Steve: This is episode number 38 of the Steve ‘n Tyler Show.
Narrator: Welcome to the Steve ‘n Tyler Show by and Tyler Weiber.
Steve: Who negotiated the contract for you?
Tyler: I wrote it.
Steve: You’re pretty smart. Good for you man.
Narrator: They’re talking about everything you need to know about mortgages, home loans and more. Nobody knows mortgages like these two. Get ready because here’s Steve and Tyler.
Steve: Hey Tyler, what’s up man?
Tyler: How is it going Steve?
Steve: It’s going good bro. It’s an early Wednesday morning in Tulsa mortgage lender jenks America we’re in the live studios of the Steve ‘n Tyler show.
Tyler: Dead air.
Steve: Where’s our all audience? There’s no audience. Folks we’ve brought you here today to talk about, “How a lender can view my credit if I’m not married,” and this is going to be a quick one so we’re going to double that up with, “I filed bankruptcy, how long do I have to wait till I buy a house.” Because I can’t really talk for a long time about how we’re going to view your credit if you’re not married. Tyler, if I take an application from you and your girlfriend, how do I have to set it up in our system?
Tyler: Two different credit reports and you have a borrower that can borrow.
Steve: Yes, and you each have your own loan application. Your credit reports are separate. How we view your credit when you’re not married is like this, it’s your credit and it’s your credit, its two different credit reports. They don’t view them together. It doesn’t matter how long you been together, it doesn’t matter if you’re common law, doesn’t matter any of that crap, none of that matters.
If you’re not married you’re getting a separate loan application, period you’re getting separate credit. Now, it doesn’t mean that the other borrower, if you have two people that one borrower can’t strengthen the file because they have better credit or income or their debt ratios are better or whatever but it’s completely separate. One has nothing to do with the other, whether your girlfriend has an 800 credit score and you have a 700 it doesn’t matter.
In fact when you’re married, it’s pretty separate too it just comes together on one report because you’re only obligated as an individual on any account that you’re on, right Tyler Steve Currington?
Tyler: Right.
Steve: So it’s not like being married we get this benefit of having a joint credit report. We actually don’t. I mean it’s just –Sally has her debt, which basically all of our debts is in my wife’s name because I put it in her name, just kidding. I hope she’s not listening and it’s –whatever account you’re on is the account you’re on. The only difference between a married couple and a not married couple is we have one report and it list borrower, co-borrower and it lists all their information together and when you’re not married you have two completely separate reports, right Tyler?
Tyler: Yes.
Steve: So what else?
Tyler: Pretty simple.
Steve: All you need to do is complete the loan application and your joint incomes, bills and credit profiles will be underwritten regardless, so it doesn’t matter. It’s really not different.
Tyler: That’s not really a joint loan application is it?
Steve: It is because you’re on one property that you’re purchasing together they’re still going to underwrite all your stuff together you just have your own 1003 right? You have your own 1003. You have your own 1003. I don’t know I was just trying to get things going on there. Look, it’s really not a big deal if you’re not married but a lot of people think that if they’re not married they can’t apply for credit together or a mortgage loan together but you can.
Tyler: Yes.
Steve: I mean you can apply with your best friend or your next door neighbor if you wanted to. I mean, really the only distinction is whether you’re both going to live in the house or not and then you would be considered a non-occupant co-borrower if you weren’t leaving the house that co-center we’ve talked about before but there is no restriction from – I mean Jonathan or maybe Marshall, maybe me and Marshall want to be alone together Tyler, is that okay?
Tyler: If you guys are in a house together, sure why not.
Steve: Or maybe Marshall’s going can be my non-occupant co-borrower. Hey, if it’s not family eighty-five percent loan-to-value that’s the rules. If it’s not immediate family you can have a non-occupant co-borrower that isn’t mom, dad or ‘cause grandma or grandpa but after the fifteen percent down Steve Currington.
Tyler: Knowledge bomb.
Steve: Tyler was giving me this look like, ‘”What? What did you say?!” Where’s my what did you say? I don’t know where’s our ‘what did you say’ is. We haven’t used our ‘what did you say’ in a long time.
Recording: Holy cow.
Steve: That was more like it, I said, “Yes Tyler you can have a non-occupant co-borrower that is not related to you.
Recording: Holy cow.
Steve: That was the look he was giving me, “No way.” That I was over here doing [laughs] you don’t know anything, I’m just kidding.
Yes you can apply for credit with anybody and if they’re not non-occupant co-borrower and you’re not related there are some limitations on down payment. So moving on we’re talking about applying for joint credit when you’re not married, super easy just do it, not hard just have a separate credit report and then the other thing is –this is a really good topic is how long do I have to wait in order to get approved for a mortgage if I declared bankruptcy in the past? Tyler what’s the standard for say an FHA loan?
Tyler: Two years.
Steve: 24 months from a bankruptcy. Twenty-four months and you can get an FHA loan. Now we just recently had one where they are more than 24 months from a bankruptcy. They also had a property that was included in that bankruptcy and they’re actually –what did we figure out —they’re actually almost four years from the bankruptcy and foreclosure and on a foreclosure your required wait three years but they had something that showed up, you remember what it was Tyler?
Tyler: No.
Steve: They had a cavers.
Tyler: Yes.
Steve: So cavers basically it’s a system that we have to use that runs your social and your information against any government debts and if you have an FHA loan that is foreclosed on and you have an FHA claim then you will show up with a claim on a cavers report. Now the interesting part about that is in this person’s case is their foreclosure was more than three years ago in fact it was almost four years ago but they’re FHA claim didn’t happen until eight or nine months after their foreclosure date and that’s because it takes some time for the lender once they foreclose to say FHA have lost all this money, you insured this loan? They make the claim and which case we have to wait three years from the claim date good news is those people are closing they were past that date so it’s not a big issue but I filed bankruptcy Tyler and I want a conventional loan.
Seven years, you have to wait a while in order to do that. And there are situations where you can prove that there were extenuating circumstances that were beyond your control and you can get an exception made. In fact we just did a USDA loan that has a bankruptcy within the required time for USDA and she’s still getting a USDA loan we’re able to prove that she had extenuating circumstances that affected her and caused her to have to file bankruptcy and we’re talking specifically –when I say bankruptcy, I’m talking about a chapter seven right now we didn’t specify that. A common misperception about mortgage and bankruptcy has to do with how long bankruptcy stays on the credit report at chapter seven where that was simply wiped away will stay on your credit report for up to ten years. While at chapter 13 sometimes called a wage earner plan can stay there for up to ten years but it’s usually wiped away after seven after the filing date.
Here’s the thing once something’s on your credit, don’t ever count on it disappearing because it’s not likely that’s just going to fall off. People say, “Well I’m just waiting for that to fall off.” It’s not going to happen. Don’t hold your breath because you’re going to die of lack of oxygen. Because things don’t just fall off your credit, you have to get them deleted from your credit if they’re not there and they’re not supposed to be there and they’re there. But it’s not just your bankruptcy is just going to disappear from your credit report after 10 years. We just talked to a guy two weeks ago that has a bankruptcy from 2005 what year is it Tyler?
Tyler: 2016.
Steve: It’s been 11 years but that bankruptcy is still in his credit report how’s that? Because it doesn’t just fall off I mean it’s not like –there’s not like a cliff like in 10 years and it falls down into the river and that goes away. It’s just going to sit there rot until you do something to try to get it out. Chapter 13, this is something else Tyler that a lot of people don’t know. You can actually buy a house, get a mortgage, while you are in a chapter 13 bankruptcy, do you know that? How do you like that bomb? Now, do you know why? Because a chapter 13 bankruptcy is considered a trade client and if you have made all your payments on time in the last 12 months and you get permission from the court, from the bankruptcy judge, to buy a house, then you can. Now it changes after your bankruptcy, your chapter 13 is discharged which is very interesting because if you discharge your chapter 13 now you have the waiting period. But in the middle of it, you can do it. In fact this is kind of — I mean in a way this might make some people mad but I just talked to a lady that was in chapter 13 bankruptcy, still is in the chapter 13 bankruptcy and she got a $10,000 refund from the bankruptcy court which is where her down payments come from because she like met all the terms and she kind of overpaid a little bit. Does that make any sense?
Tyler: None whatsoever.
Steve: I filed bankruptcy, I didn’t pay my creditors the full amount but I overpaid what I was supposed to so I get ten grand back. It is what it is. That’s what the bankruptcy clause there so don’t judge lest you be judged, right? Anyway the point is there’s lots of rules out there regarding bankruptcy whether you are in chapter 13 or chapter 7 or whatever it is. And just be aware that there is a waiting period for chapter 7 and chapter 13 or however you do it but there are times while you are in a 13 that you can actually qualify for a loan while you are in it.
And then that stuff, it really is – I mean it’s going to sit on there for a while Tyler. It’s going to be something that you are going to have to address and then the other thing you want to be careful about after you’ve done a bankruptcy, just because your bankruptcy is two years old. Because this happens like what, everyday Tyler?
Tyler: Yes.
Steve: Someone calls and says “Hey, I had a bankruptcy two and a half years ago but my bankruptcy is more than two years old, I want to buy a house and I qualify now.” You still have to credit qualify. You have to have re-established credit. You have to have no lates after the bankruptcy. It’s not that you can’t have a late but you are not supposed to have any lates after bankruptcy because it doesn’t show that your’re being responsible and with your debt. After you file bankruptcy, they wiped all your debt away and then here we are 24 months later and you’ve got lates on other accounts.
Tyler: It’s the same road.
Steve: Yes. You are going down the same road. This is what your lenders are going to do, [chirping] while they are sitting there with their eyes wide open. Well, you filed bankruptcy and now you have lates on everything and you have established new credit but all the credit that you have established you’ve got lates on. I mean this is not going to work.
You need to make sure that after your bankruptcy that you don’t stick your head in the sand like an ostrich and think “Oh, if I just ignore it, it will get fixed itself.” You need to immediately get out there and start reestablishing credit so that when you get to that two years you’ve got some accounts that are open that you are paying to show your ability to pay stuff back and by the way don’t be late on anything. Like, make a reminder, I mean use your phone calendar or something. Make sure you pay your bills because if you don’t then you are going to have a bankruptcy and lates and when you are late after the bankruptcy, it’s going to hurt and you are probably not going to get qualified for a house.
Tyler: It’s also a good idea to keep track of those bankruptcy papers. You are probably going to need those.
Steve: Yes, that’s true. And if you’re cool like you have access to [unintelligible 00:14:08] and you can go pull everybody’s, I just showed Tyler this week, you can go pull out everybody’s bankruptcy paperworks from anywhere in the country which is kind of neat.
They charge you if you use it. It’s like $0.02 a page or $0.06 a page and if you get a bill of more than $10 in 90 days you have to pay. I’ve had it since when we decided, March 10th 2010, yes. So anyway, [unintelligible 00:14:31] is kind of cool. I had a client in LA when I was doing mortgages over there, I’m totally kidding. We’re doing Tulsa mortgage lender, we’re not doing LA. People call other lenders, they get turned down, they get turned down, they get turned down because they have talked to [unintelligible 00:14:54] and they have started too soon and their bankruptcy was less than two years old.
They also get told by some lenders that, “Oh you know, you are only a year and a half from your bankruptcy. You need to wait another year and a half before you can apply for a mortgage.” Do your research and find out and get with a lender that knows what he’s talking about because just because one lender or two lenders just told you, you do qualify or you don’t qualify it doesn’t mean that you don’t or you do. I just talked to a guy yesterday who — do you remember this Tyler? Who said he was qualified for a USTA loan but then he got the contract on the house and then he was no longer qualified according to his lender. I’m like, “Wow, why, like what happened?” “ I don’t know if she just said I wasn’t qualified.”
So luckily for him he called – I told some mortgage company called Total Lending Concept and stevecurrington and we are going to get him taken care of but there is lots of misinformation and lots of people out there that just don’t know what they’re talking about or they just misinform you. Just be careful and don’t be afraid to get a second opinion, just because someone has just told you that they can’t get you qualified doesn’t mean that someone else can’t. Because there are times even within the timeframe of — for FHA or conventional or whatever where you are inside the timing requirement for bankruptcy that you can get qualified for a loan if you have extenuating circumstances and you can document that –because that’s a big thing, you can’t just make up stuff but we can document it. We had one that had a kid that had a medical condition that caused what happened and we were able to document it and get it through underwriting and those things happen.
So the two things are, how do they look at my credit, if I’m not married we talked about that completely and0 separately, and how long do I have to wait from the time I filed bankruptcy to be approved for a mortgage, typically two years from NFHA loan. Every loan program is different. It will take longer for some others. And then there are possibilities that you can get it done in less time than that. Just make sure you check with the Tulsa Mortgage Lender to get that information and get accurate information. And that’s all I’ve got for today. I’m Steve Currrington, you’ve been listening to the Steve ‘n Tyler show. We are the mortgage experts, the Tulsa Mortgage Lender experts that you want to call when you need a loan. [music]. We are out people, that’s the end. Sugar, let’s get it on dot com.
[end of audio 00:17:44]

Illinois Residential Mortgage Licensee NMLS License #2611
3940 N. Ravenswood Chicago, IL 60613 - (866) 934-7283
The company name, Guaranteed Rate, should not suggest to a consumer that Guaranteed Rate provides an interest rate guarantee prior to an interest rate lock.