Reasons People Apply Jointly Or Individually For Mortgage Loans
If you are single, dating, or married and want to buy a house, you might have the option of applying for a mortgage individually or jointly, and it is important to know the differences in these options before you apply. There are often benefits of choosing one option or the other, and here are some things you should know about both.
Reasons People Apply Individually
A person who is single may apply individually for a home loan simply because the person is buying a house alone. If this person will live there alone and does not plan on sharing this house or the loan with anyone, applying alone might be the person's only option.
If the person is dating or is married, he or she might have the option of applying for a mortgage with his or her significant other. While applying jointly can have benefits, there are also reasons a person in this position would apply alone. The first reason is that he or she is not married. If the person is unsure of the future with a girlfriend or boyfriend, applying together probably would not be a wise decision. If this person is married, he or she could still apply individually, and the main reason for doing so would be the other person having bad credit. Bad credit on the part of one person could negatively affect the entire loan.
Reasons People Apply Jointly
Applying jointly is usually a better route for a person who is married, and it might be right for a person in a long-term committed relationship, too; however, this is something you should think carefully about doing beforehand if you are not married. If you are not married but buy a house together, you could end up with problems later on if you split up, and that is why you should be very cautious about going through with this.
Filing jointly gives you two key benefits. The first is that you can qualify for a larger loan if you both work, as lenders will take both incomes into consideration. Secondly, it can be beneficial for couples with great credit. When two people both have great credit, it could offer a way to get a lower interest rate on the loan.
Applying individually or jointly or both good options for mortgage loans, but one option is probably better than the other for you. To find out which one to use, talk to a mortgage lender at a local bank.