New York, NY (PRWEB) October 18, 2013
In an article entitled “Your spouse's credit might hurt your chances to buy a home“ published on October 16, 2013 by MSN Money.com, Chris Berk discusses nine states in the United States where community property law dictates that both spouses own the house regardless of who’s name is on the mortgage. For those leaving in the nine states that recognize community property, FinanceAccleration.com provides tips to more easily secure a mortgage from lenders.
Unlike the majority of states in the US, the following states adhere to community property principles as opposed to common law property rights: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. Any married couple who buys a house in those states are both financially and legally responsible for the mortgage, even if only one spouse applies for the loan.
What that translates to is mortgage lenders looking at both spouses’ financial profiles to determine if awarding the loan is worth the risk. If one spouse has a high amount of student loan debt, for example, but is currently earning low wages, the overall credit rating of the couple will suffer.
In light of community property, FinanceAccleration.com offers some advice to young couples looking to buy a home:
1. Prepare for a home purchase at the onset of marriage.
2. Request the credit score and report of both spouses.
3. Reduce debt as soon as possible, starting with the highest interest rate.
For those looking to buy a home that are dealing with bad credit scores, FinanceAcceleration.com recommends watching this video about bad credit loans.
Chris Berk brings to light the fact that for couples buying houses in nine particular states, community property means that both spouses’ finances are of interest to mortgage lenders. To better assist couples as they purchase a home in these states, FinanceAcceleration.com announces 3 financial tips to secure an attractive mortgage rate.
FinanceAcceleration.com is a website dedicated to helping young couples financially plan as they begin their lives together. Even with a bad credit score, this online resource provides key insights to securing loans and achieving financial goals.