{"id":4168,"date":"2023-10-28T21:09:18","date_gmt":"2023-10-28T21:09:18","guid":{"rendered":"https:\/\/connectwithfund.com\/finance\/my-wife-is-leasing-a-new-car-could-that-hurt-my-mortgage-application-or-raise-my-interest-rate\/"},"modified":"2023-10-28T21:09:18","modified_gmt":"2023-10-28T21:09:18","slug":"my-wife-is-leasing-a-new-car-could-that-hurt-my-mortgage-application-or-raise-my-interest-rate","status":"publish","type":"post","link":"https:\/\/connectwithfund.com\/?p=4168","title":{"rendered":"My wife is leasing a new car. Could that hurt my mortgage application or raise my interest rate?"},"content":{"rendered":"
\n

\u2018<\/em><\/strong>The Big Move<\/em><\/strong>\u2019 is a MarketWatch column looking at the ins and outs of real estate, from navigating the search for a new home to applying for a mortgage.<\/em><\/strong><\/p>\n

Do you have a question about buying or selling a home? Do you want to know where your next move should be? Email Aarthi Swaminathan at <\/em><\/strong>TheBigMove@marketwatch.com<\/em><\/strong>.<\/em><\/strong><\/p>\n

Dear Big Move,<\/strong><\/h2>\n
\n

I\u2019m in the middle of applying for a mortgage.<\/p>\n

My wife needs to turn in her leased car and lease a new one during the underwriting process on the mortgage.<\/p>\n

Due to my low debt-to-income ratio and higher credit score, as well as my wife\u2019s income from her business, we decided it would be best \u2014 and easier \u2014 to put the mortgage under my name, but put the title under both of our names.<\/p>\n

My question is, would leasing a car hurt our underwriting process, and hence our mortgage application?\u00a0<\/p>\n

Being Careful\u00a0<\/p>\n

This week\u2019s Big Move question first appeared on <\/em>Reddit<\/em>.<\/em><\/p>\n

Dear Careful,<\/strong><\/h2>\n

It\u2019s always good practice to take a pause on spending big \u2014 like leasing or buying a car \u2014 or taking on debt when you\u2019re in the middle of applying for a mortgage. The process is detailed, and lenders may not want to see you taking on more debt while you are applying for what is arguably the biggest loan you will take on in your life.<\/p>\n

However, the simple answer to your question on the new leased car is, no \u2014 your wife\u2019s actions will not hurt your mortgage application. But if your wife was on the mortgage, and you or she decided to take out another large loan, that could hurt your credit score, and ultimately impact the mortgage rate offered by your lender.<\/p>\n

Bottom line: It would only impact your mortgage application if you were to cosign for the car lease, said Melissa Cohn, regional vice president at William Raveis Mortgage. So it actually makes sense: you put your name on the mortgage, and your wife puts her name on the car loan.<\/p>\n

But remember that if your name is on the loan, you and you alone are responsible for paying off the loan. But your wife still owns 50% of the property. In general, it\u2019s better \u2014 in the event you should divorce \u2014 that you are both on the deed and the loan. (MarketWatch\u2019s Moneyist columnist has dealt with far too many stories about this exact dilemma.)<\/p>\n

Other red flags when applying for a mortgage<\/strong><\/h4>\n

Here are some of the other things you should probably not<\/em> do when you are in the middle of applying for a mortgage. Avoid opening new credit cards, or taking on new debt, since that could not only affect your credit score, but also your debt-to-income ratio.\u00a0<\/p>\n

Do not cosign on another person\u2019s debt when you are applying for a mortgage as that will obligate you to pay for their loan, resulting in a higher debt-to-income (DTI) ratio. This could be as simple as cosigning for a child\u2019s student-loan application.\u00a0<\/p>\n

Another easy mistake: don\u2019t close any credit cards or accounts during the mortgage-application process, even if you finally want to get rid of the seldom-used joint credit card your mom gave you in college. That account will show a long credit history, and closing it may hurt your score. Wait until you\u2019ve closed on the house.<\/p>\n

Moving jobs or starting a new business when you\u2019re in the midst of the mortgage process could raise a red flag for the lender. Lenders like to see a stable source of income, and may take note of any periods of unemployment. Check with the lender before you make any career moves, as they have different thresholds for such changes.<\/p>\n

For now it sounds like you\u2019re in good shape overall. Taking into account all of the caveats I\u2019ve just pointed out, I wish you all the best in your new home. I hope you create many happy memories there.<\/p>\n

Related: <\/strong>America\u2019s No. 1 emerging real-estate market is in Kansas. \u2018Life is easy over here.\u2019\u00a0<\/p>\n

By emailing your questions, you agree to having them published anonymously on MarketWatch. By submitting your story to Dow Jones & Company, the publisher of MarketWatch, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties<\/em>.<\/strong><\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u2018The Big Move\u2019 is a MarketWatch column looking at the ins and outs of real estate, from navigating the search for a new home to applying for a mortgage. Do you have a question about buying or selling a home? Do you want to know where your next move should be? Email Aarthi Swaminathan at TheBigMove@marketwatch.com. Dear Big Move, I\u2019m in the middle of applying for a mortgage. My wife needs to turn in her leased car and lease a new one during the underwriting process on the mortgage. Due to my low debt-to-income ratio and higher credit score, as<\/p>\n","protected":false},"author":1,"featured_media":363,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[],"class_list":["post-4168","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"\nMy wife is leasing a new car. 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