Judgment House

The judgments that Lee's fiance has on her credit report are one of a few reasons that Dave gives his particular answer on them buying a house.

QUESTION: Lee is debt free except the house and getting married soon. His fiancé has 2 judgments against her and they want to buy a house next year. Can they buy a house before tackling those, or should they wait until those judgments are off her credit report before buying? There are many reasons why they are not ready to buy a house, says Dave.

ANSWER: You need to clean those up before you buy a house. You can probably settle them if you don’t have enough to pay in full. Whatever you do, do it in writing before you give anyone any money, and don’t let anyone that you are in a fight with have access to your checking account.

You guys as a couple need to be debt free with an emergency fund in place before you buy a house. It affects her credit rating, but they are old judgments. Once they are cleared up, you should be able to work a mortgage through. It shouldn’t keep you from getting a home.