When locking with a co-buyer, both credit profiles determine the rate. The lower middle credit score is typically used. Both must verify income and assets before closing.
Having a co-buyer can help you qualify for a larger loan, but it also means both parties' financial profiles are evaluated.
How Co-Buyers Impact Your Rate
When two or more people apply for a mortgage together, lenders evaluate all applicants' credit profiles. For conventional loans, the lender typically uses the lowest middle credit score among all borrowers to determine pricing. This means if one buyer has excellent credit and the other has fair credit, the rate will be based on the lower score. For buyers in San Antonio and the Texas Hill Country, I recommend checking both credit profiles early to understand how they affect your rate.
Credit Profile Requirements
Both co-buyers must have their income, assets, and credit verified before the rate can be locked. If one co-buyer has incomplete documentation or undisclosed debts, it can delay the lock. Both parties should be prepared to provide tax returns, pay stubs, bank statements, and identification early in the process to avoid delays.
Verification Before Closing
Lenders will re-verify employment, income, and credit for all co-buyers shortly before closing. Any changes to either buyer's financial situation can affect the loan approval or require re-locking at a different rate. Avoid making major financial changes, such as changing jobs or taking on new debt, during the lock period.
