Credit Score Needed When Buying as a Couple

Reader Question: When both you and your spouse are purchasing a home what is a good credit score for you both to have?

In the past, this has been a situation where an excellent credit score could "make up for" a bad credit score. But given the current economic issues we are having, both people will need good scores to qualify for a loan and purchase a home.

Of course, the word "good" doesn't tell you very much. So let's talk numbers. In fact, let's forget that we are talking about a couple for a moment here ... because everything I'm about to say applies to individual home buyers and couples alike.

A few days ago, I was contacted by some folks on the NBC Nightly News team. They are doing a show about people who are having trouble getting a mortgage for a home purchase, despite the fact that they have decent credit. This is a sign of the times. Lenders are requiring borrowers to have higher credit (to qualify for a mortgage) than they did in the past.

Here's an article you should read that explains this subject in more detail. It talks about how buyers in 2006 needed a score of around 620 to qualify for the best rates on a mortgage loan. By comparison, buyers in 2008 needed a credit score of around 760 to qualify for the best rates. Mind you, this is not a cut-off point for getting a loan or being turned down. It's just the range needed to qualify for the best rates -- which means a smaller mortgage payment each month.

Of course, with all of this being said, there's only one way to find out if you qualify for a mortgage (and what rates you can get). You have to apply. If you click on the "find a mortgage loan" link in the upper-right menu of this blog, you can apply through LendingTree and get several offers at once.

Good luck.