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Question by Its A Secret!: Question About Bad Credit Mortgage?
I have several questions about buying a home with bad credit. Before I do, let me give you some information about me to help you better answer the questions.

I’m hoping to marry my current girlfriend sometime in the future – maybe in a year or so, God willing. We would probably rent an apartment for a year or two after getting married, then would like to buy a home.

The good news is that her credit is excellent. My income is about ,000 a year, and her’s is about ,000 per year, so our combined income would be about ,000, assuming nothing changes between now and then (but hopefully it will change for the better .

The bad news is that my credit is bad – I had a bankruptsy a few years ago, and my credit score is just over 600, which is pretty dismal. I understand that there are ways to improve your credit score (any tips would be appreciated), but I’m just trying to get an idea of what kind of interest rate we might receive on a mortgage based on our current financial picture.

I don’t understand how the bank would determine our interest rate considering her good credit and my bad credit. Based on my credit score, I would think the bank would give me a rate of about 8.5% or higher, if I could even qualify for a loan at all, but based on her good credit, my guess the interest rate would be about 5.5%. My guess is that we could probably afford a home in the 0,000 to 0,000 price range.

I’m very new to all of this, so I understand that my estimates may be off, but any feedback or advice you can give would be appreciated. This would be a few years away, but I’d like to do as much as I can in the next couple of years to improve my credit, and to plan for this so we can make the best possible decision when that times comes to buy a house.

Thanks to all that respond!

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