Taking out a Mortgage in the States | Spouse is USC living in States

[Maverick_BigApple 0]

Hi All,

 

My spouse and I had obtained a mortgage pre-approval in late 2020. Considering that the approval was based off my spouse's income (Spouse is USC, and I'm based out of Canada at the moment), I had a few questions -

 

(i) Once I move to the United States (sometime later this year - 2021), would the mortgage amount we get approved for change considering that I will have a job and income that pays in USD?

 PS: I'm currently employed in Canada, and get paid in CAD. I've lived in the States for over 10 years, so I do have history there, but, I've been in Canada for a little over 2 years now

 

(ii) If I have an existing mortgage that I've taken out for a property in Canada, would that impact the approval process, and, the amount we can take out?

 

Many thanks!

NK

[JeanneAdil 6,514]

Mortgage brokers / companies have federal rules to follow but also their own company rules so this is a question to ask them

and if you had a US SS#,  you would have a credit history

[NikLR 13,227]

Not sure on number 1, but number 2, yes you having a mortgage in Canada would affect your ability to obtain a mortgage in the USA.  It greatly increases your debt to income ratio.  

 

Think about it, if your spouse has a incoming income of 6k a month and only has 2k a month in current expenses including rent, car, credit card, and now you add your mortgage payment to that but you can't include your income possibly because it's in Canada, suddenly the ability to get a mortgage in the USA is much harder.

What you CAN do is add your name to the title but not the mortgage.   That doesn't mean you won't help pay for the mortgage once you move, but it does mean that you will own the house together, which if you need to ROC will help.  My income and credit score was so insignificant when we bought our home, that I am not included on the mortgage, however I am included on the title.  I help pay the mortgage now that I have a steady job with more earning potential, and the next home we buy I will also be included on the mortgage but we included the title paperwork with our ROC.  

[Maverick_BigApple 0]

Many thanks for the note, @NikLR.

 

While we have been considering purchasing property in the US, most mortgage agents/issuers (as you mention) don't consider my existing salary and employment in CAD. The fact that we are considering a region with a higher cost of living (Northeast) exacerbates the situation. 

 

As for the ability to take out a mortgage in the US (if I have one taken out here), would the fact that I have rental income from the property that covers the mortgage payment help in  decreasing the debt to income ratio?

 

Many thanks!

NK

[NikLR 13,227]

15 minutes ago, Maverick_BigApple said:

Many thanks for the note, @NikLR.

 

While we have been considering purchasing property in the US, most mortgage agents/issuers (as you mention) don't consider my existing salary and employment in CAD. The fact that we are considering a region with a higher cost of living (Northeast) exacerbates the situation. 

 

As for the ability to take out a mortgage in the US (if I have one taken out here), would the fact that I have rental income from the property that covers the mortgage payment help in  decreasing the debt to income ratio?

 

Many thanks!

NK

Yes that would be income that offsetting your debt.  They look for the same things in the USA as they do in Canada for your ability to qualify for a mortgage.  That's why when you start the process you shouldn't make any large purchases etc.  When we refinanced our home it was the same thing.  My husband was looking into buying a new car and couldn't start the process until a few days after the paperwork was signed.  We didn't make any large purchases or do anything weird to affect his credit score in the month it took from application to closing.