Lilywolf

Hi all! My husband (UK citizen with US visa) and I (US citizen) currently live and work in the UK. We will be moving back to the US this year. When being considered for a pre-approved mortgage, they will obviously want to see the last few years tax returns as proof of income (which I have of course filed with the IRS for the last 3 years).

Question is, when hubby and I move back to the US, neither of us will be working right away but will have the finances from the sale of our UK home as collateral. Do they accept this as "income/assets" when evaluating whether you will be acceptable for a pre-approved mortgage? We would like to apply as soon as we arrive so that we can purchase a home ASAP. Has anyone with a similar situation been through this? I would appreciate any advice.

Patrick

You can get no-income, no-assets mortgages based on your credit history. There are many mortgages out there, they should be able to advise you on one. If the worst comes to the worst you could just rent for 6 months until you both have an income to show. But we bought our house while still in the UK and moved in 3 days after we arrived

Gross50

I could be wrong but pre-approval is based on your financial status. I got pre-approved over the phone (bear in mind that my company introduced me to the lenders as part of my relocation package).

It was during the approval that they asked for documentation. You can also get pre-qualified before going for the pre-approval.

fatbrit

You can even get a mortgage as an illegal alien with no credit history and no status, but you will without doubt pay a hefty premium for taking a no-documentation mortgage loan, although a hefty deposit may allieviate this to some extent. And refinancing it when you have a US income history carries a penalty with additional fees. I would look at the option Patrick suggested of renting for six months, then applying for a mortgage when you have a short US history. Also during this time, you should look at getting hubby on the credit road by piggybacking on your credit, transferring UK credit card, or taking a secured card over here.

Don't get too hung up about pre-approval/qualification crap. It really means diddly squat until the loan actually funds! However, your realtor may need a pre-approval letter from your lender when s/he's negotiating the contract with the seller.

BritGuyTN

absolutely - pre-approval means sweet FA

there is no guarantee of anything and they can back out at any time

do as suggested (and as i did) and rent for a few months to establish a credit history

use www.bankrate.com to get a reality check on rates to make sure your loan officer is not giving you a load of BS

Lilywolf

Hi guys, thanks very much for your advice . I forgot to mention that I am a US citizen with roughly 10 years great credit history. Can I use my credit history alone without hubby's?

fatbrit

Yes no problem. But if you're both earning about the same when you get to the states, you'll probably get better ratios for the loan with both of you on the ticket. Sign hubby up for one on your credit cards pronto (if you don't trust him, you don't have to actually give it to him!). Make sure it's as a joint account holder not just an additional user. Give 'em a call to see if they can do it first -- some do, some don't.

AdobePinon

Like fatbrit says. But if your broker thinks your hubby's lack of credit history will pull you down, you can go it alone on the mortgage. You can also choose to file a quit claim at closing to put the house in both names (although the mortgage will stay in your name). I'm not sure if there's any tangible benefit other than making your hubby feel like he's important.

Suffolk Bumpkin

My wife and I just got pre- approved by Lendia. ANd we're both living in the UK.
We did the whole thing over the phone/ e-mail - my wife initiated it by e-mail , and then the woman called my wife one evening and had a chat about earnings etc. and everything was set.

I agree though - it isnt worth much - we have decided to go with a different broker/ lender anyways - we know we'll get pre approved from them too, though my wife has excellent credit (628 out of 700) - I aint got diddly squat.

fatbrit

Be careful with multiple inquiries spread out over time -- if the lender has made a hard pull on your credit record, this dings your credit score every time unless it is for similar loans within a short time frame. Good to shop multiple lenders, bad not to do it all at the same time.

The credit numbers you give are wrong. The maximum for FICO is not 700 and, assuming this is a FICO score, 628 is moderate low.

Is your broker telling you porky pies?

John Murray

If i (Perm Resident) am included on my wifes (US Cit) credit card as an additional user - how would this affect our credit and does this happen striaght away.

I have a good score, but only ben in the US 6 months comparted to my wifes 10 years or so of credit history. I read somewhere that if I was an authorised user of her card, this improves my score?

We're just about to apply for a mortgage, so arent sure whether to sit tight and hope for the best, or if we can take any steps (other than making sure our outstanding balances are low/zero) to give our score a boost!

dbj1000

Our broker (whose details I sent you by PM) arranged our mortgage when we had only been here 6 months, and had a score of only around 625. He got us an excellent rate (around 0.1% above prime) on an 80-10-10 morgage over 30 years.

He already told me that if your wife is a USC with good credit history then he can arrange something for you regardless of your lack of credit history. If you really already have some credit score of your own then then that should make it even easier.

John Murray

Thanks DBJ. I appreciate your help. At the moment I'm trying to cover all bases and cast my net as wide as I can.

fatbrit

There are two ways you can be added to a card: additional user and joint account holder. Not all issuers offer the second option, but this is the best one to take as it will virtually guarantee being included in your credit history; the former option may or may not. The joint account holder option is not widely promoted by the CC issuers even where available. Call customer service and ask them. If possible, they will send you a contract to sign before making you jointly liable.

You are correct in your belief that keeping CC outstanding balances low will improve your credit score.

You will receive a FICO score 6 months after your first loan line is recorded by the credit bureau.

Don’t get too hung up on your credit score. The underwriter will take many more factors into consideration than the mere FICO score. However, you should ask the broker whether you might receive better terms if the mortgage application were solely in your spouse’s name provided this did not throw the ratios of loan amount to earnings off the scale.

fatbrit

You also need to take into account the one-time costs of the loan together with the rates for all 3 loans and the conditions under which they were issued before deciding the benefit of the offer.