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Tulsa Mortgage :  Podcast 38 – Part 1

Tulsa Mortgage Steve: This is episode number 38 of the Steve ‘n Tyler Show.
Narrator: Welcome to the Steve ‘n Tyler Show by stevecurrington.com and Tyler Weiber.
Steve: Who negotiated the contract for you?
Tyler: I wrote it.
Steve: You’re pretty smart. Good for you man.
Narrator: They’re talking about everything you need to know about mortgages, home loans and more. Nobody knows mortgages like these two. Get ready because here’s Steve and Tyler.
Steve: Hey Tyler, what’s up man?
Tyler: How is it going Steve?
Steve: It’s going good bro. It’s an early Wednesday morning in Tulsa mortgage jinx America we’re in the live studios of the Steve ‘n Tyler show.
Tyler: Dead air.
Steve: Where’s our all audience? There’s no audience. Folks we’ve brought you here today to talk about, “How a lender can view my credit if I’m not married,” and this is going to be a quick one so we’re going to double that up with, “I filed bankruptcy, how long do I have to wait till I buy a house.” Because I can’t really talk for a long time about how we’re going to view your credit if you’re not married. Tyler, if I take an application from you and your girlfriend, how do I have to set it up in our system?
Tyler: Two different credit reports and you have a borrower that can borrow.
Steve: Yes, and you each have your own loan application. Your credit reports are separate. How we view your credit when you’re not married is like this, it’s your credit and it’s your credit, its two different credit reports. They don’t view them together. It doesn’t matter how long you been together, it doesn’t matter if you’re common law, doesn’t matter any of that crap, none of that matters.
If you’re not married you’re getting a separate loan application, period you’re getting separate credit. Now, it doesn’t mean that the other borrower, if you have two people that one borrower can’t strengthen the file because they have better credit or income or their debt ratios are better or whatever but it’s completely separate. One has nothing to do with the other, whether your girlfriend has an 800 credit score and you have a 700 it doesn’t matter.
Tulsa Mortgage In fact when you’re married, it’s pretty separate too it just comes together on one report because you’re only obligated as an individual on any account that you’re on, right Tyler?
Tyler: Right.
Steve: So it’s not like being married we get this benefit of having a joint credit report. We actually don’t. I mean it’s just –Sally has her debt, which basically all of our debts is in my wife’s name because I put it in her name, just kidding. I hope she’s not listening and it’s –whatever account you’re on is the account you’re on. The only difference between a married couple and a not married couple is we have one report and it list borrower, co-borrower and it lists all their information together and when you’re not married you have two completely separate reports, right Tyler?
Tyler: Yes.
Steve: So what else?
Tyler: Pretty simple.
Steve: All you need to do is complete the loan application and your joint incomes, bills and credit profiles will be underwritten regardless, so it doesn’t matter. It’s really not different.
Tyler: That’s not really a joint loan application is it?
Steve: It is because you’re on one property that you’re purchasing together they’re still going to underwrite all your stuff together you just have your own 1003 right? You have your own 1003. You have your own 1003. I don’t know I was just trying to get things going on there. Look, it’s really not a big deal if you’re not married but a lot of people think that if they’re not married they can’t apply for credit together or a mortgage loan together but you can.
Tyler: Yes.
Tulsa Mortgage Steve: I mean you can apply with your best friend or your next door neighbor if you wanted to. I mean, really the only distinction is whether you’re both going to live in the house or not and then you would be considered a non-occupant co-borrower if you weren’t leaving the house that co-center we’ve talked about before but there is no restriction from – I mean Jonathan or maybe Marshall, maybe me and Marshall want to be alone together Tyler, is that okay?
Tyler: If you guys are in a house together, sure why not.
Steve: Or maybe Marshall’s going can be my non-occupant co-borrower. Hey, if it’s not family eighty-five percent loan-to-value that’s the rules. If it’s not immediate family you can have a non-occupant co-borrower that isn’t mom, dad or ‘cause grandma or grandpa but after the fifteen percent down.
Tyler: Knowledge bomb.
Steve: Tyler was giving me this look like, ‘”What? What did you say?!” Where’s my what did you say? I don’t know where’s our ‘what did you say’ is. We haven’t used our ‘what did you say’ in a long time.
Recording: Holy cow.
Tulsa Mortgage Steve: That was more like it, I said, “Yes Tyler you can have a non-occupant co-borrower that is not related to you.
Recording: Holy cow.
Steve: That was the look he was giving me, “No way.” That I was over here doing [laughs] you don’t know anything, I’m just kidding.
Yes you can apply for credit with anybody and if they’re not non-occupant co-borrower and you’re not related there are some limitations on down payment. So moving on we’re talking about applying for joint credit when you’re not married, super easy just do it, not hard just have a separate credit report and then the other thing is –this is a really good topic is how long do I have to wait in order to get approved for a mortgage if I declared bankruptcy in the past? Tyler what’s the standard for say an FHA loan?
Tyler: Two years.
Tulsa Mortgage Steve: 24 months from a bankruptcy. Twenty-four months and you can get an FHA loan. Now we just recently had one where they are more than 24 months from a bankruptcy. They also had a property that was included in that bankruptcy and they’re actually –what did we figure out —they’re actually almost four years from the bankruptcy and foreclosure and on a foreclosure your required wait three years but they had something that showed up, you remember what it was Tyler?
Tyler: No.
Steve: They had a cavers.
Tyler: Yes.
Steve: So cavers basically it’s a system that we have to use that runs your social and your information against any government debts and if you have an FHA loan that is foreclosed on and you have an FHA claim then you will show up with a claim on a cavers report. Now the interesting part about that is in this person’s case is their foreclosure was more than three years ago in fact it was almost four years ago but they’re FHA claim didn’t happen until eight or nine months after their foreclosure date and that’s because it takes some time for the lender once they foreclose to say FHA have lost all this money, you insured this loan? They make the claim and which case we have to wait three years from the claim date good news is those people are closing they were past that date so it’s not a big issue but I filed bankruptcy Tyler and I want a conventional loan.
Seven years, you have to wait a while in order to do that. And there are situations where you can prove that there were extenuating circumstances that were Tulsa Mortgage beyond your control and you can get an exception made. In fact we just did a USDA loan that has a bankruptcy within the required time for USDA and she’s still getting a USDA loan we’re able to prove that she had extenuating circumstances that affected her and caused her to have to file bankruptcy and we’re talking specifically –when I say bankruptcy, I’m talking about a chapter seven right now we didn’t specify that. A common misperception about mortgage and bankruptcy has to do with how long bankruptcy stays on the credit report at chapter seven where that was simply wiped away will stay on your credit report for up to ten years. While at chapter 13 sometimes called a wage earner plan can stay there for up to ten years but it’s usually wiped away after seven after the filing date.
Here’s the thing once something’s on your credit, don’t ever count on it disappearing because it’s not likely that’s just going to fall off. People say, “Well I’m just waiting for that to fall off.” It’s not going to happen. Don’t hold your breath because you’re going to die of lack of oxygen. Because things don’t just fall off your credit, you have to get them deleted from your credit if they’re not there and they’re not supposed to be there and they’re there. But it’s not just your bankruptcy is just going to disappear from your credit report after 10 years. We just talked to a guy two weeks ago that has a bankruptcy from 2005 what year is it Tyler?
Tyler: 2016.