Wednesday, January 21, 2009

This Crazy Mixed Up World...

As many of you already know, Jordan and I are in the process of building a home. See if you can see the craziness of my story.

So, here is my story from yesterday. Jordan and I have been pre-approved by the preferred mortgage company that the builder we are using recommends. We were a little disappointed with the closing fees, and so we decided to look at the bank that he has been banking with for 8+ years and I have been banking with for 4+ years, thinking that we could get better closing fees through them.

We are COMPLETELY debt free. We don't owe a penny to anyone. We both have amazing credit (I have a 788 credit score and his is 786). We never miss a payment on any bills, etc... We will put down in cash at least 10% upon closing of this house. We can swing all of the bills including the mortgage on his income alone. In other words, we are doing really good. We have budgeted most of our almost 5 years of marriage and we don't buy things that we cannot afford.

So, all of the above being said. Jordan and I were denied the loan at our bank yesterday because my husband has never had any credit. That means, he has never had to pay any loans. He was fortunate to have parents that paid for his education and his used car, which we are still using (we don't buy new things). His parents really planned for their kiddos. They don't live above their means; they actually live below their means.

The bank would love it if it was just me they were considering on the loan because Jordan and I have completely paid off all of my student loans. I had to get one every semester for four years of college. I also have a store credit card which I haven't used in over a year, but I paid it off when I did use it. We only have one credit card to our name and we pay it off every month (we like using it to get points for hotels and plane tickets). Anyway, they are saying that we will be able to apply for a FHA (which is for people with bad credit or no credit at all) loan and not just the standard loan through them.

For those of you who have kids and are planning on paying for college and their cars etc... Do this, somehow, have them pay (have them take out a loan) and then pay it back immediately in their name. If you do this, they will at least have some lines of credit. When they are ready to purchase their first home, etc... at least they will have some established credit.

So, we are being "punished" for my husband who has not ever had any debt to his name. It is a mess. We are definitely learning through all of this.


Lori said...

I've seen that working for a mortgage company before. So sorry you're having to deal with it.

Hattie said...
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Hattie said...

Sorry about the loan problems! I had that "no credit" problem when I tried to get my first cell phone in college. Granted, trying to get a loan on a house is a bigger issue! Also, FHA loans are not only for people with no/bad credit. They work for a variety of different circumstances.

Rebecca said...

Total ditto on the FHA loans. We have one and our credit scores are also in the high 700s. I'm sorry you're dealing with this problem though. That really stinks!

Hollie said...

Travis & I had the same problem when we got married. Travis had no credit b/c of the same reason as your hubby. My parents paid for my college, but they would put money into my account for tuition & I would pay for it with a check out of my personal checking account...worked beautifully!!! I came out of college with impecable credit! We actually had to purchase our 1st home under MY name. Something to consider with your children.