My wife and I are considering getting our first house. However my credit is extremely poor while my wife's credit is extremely good. How will our varying credit scores affect our ability to get a loan? Should we wait for me to improve my credit before we try to get the loan?
Lenders vary widely in their underwriting criteria, and it's possible that the effect of your lower scores could vary just as widely. Sit down with a couple of lenders in your area and be up front about your question. If you know what your numeric credit scores are, share them with the lender and ask what effect, if any, your lower number would have if you filed an application. If the answers indicate that you'd be better off waiting until your scores improve, do that.
Waiting for the best time to apply may be like trying to decide the best time to sell off a winning stock in the market. Sometimes you guess right, and sometimes you don't. Waiting for your scores to go up could mean that you come back looking for a mortgage when rates are on the way up.
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Lenders vary widely in their underwriting criteria, and it's possible that the effect of your lower scores could vary just as widely. Sit down with a couple of lenders in your area and be up front about your question. If you know what your numeric credit scores are, share them with the lender and ask what effect, if any, your lower number would have if you filed an application. If the answers indicate that you'd be better off waiting until your scores improve, do that. 