Posted on: 18th Jul, 2011 07:34 am
My mother purchased a home for me a year ago, while I worked on my credit score. I paid for everything, it was just in her name. Now I want to get the morgage and house in my name and am getting all kinds of advice, but I'm not sure what the best route is. I don't want my mom to have to pay any taxes or anything. Will I have to buy it from her and go through closing costs aagin? I have heard quit claim it, but the morgage would stuill be in her name and I don't want that either.
if you do a quitclaim to be added to title, and can document monthly payments, then the lender should take this as a refinance. your income and credit would need to be sufficient to qualify. contact a loan officer to see if you would qualify. good luck!
I am guessing doing it this way would be cheaper than just buying it from her? If I buy it from her there would be no profit on her end, so she would not have to pay capital gains
a simple quit claim deed is the easiest way to do what you wish to accomplish. as chris noted, you'll want to visit with a loan officer first to see what your options would be, and to ensure that you'll qualify to borrow.
Forgive me if I am being naive, but wouldn't this be the same as if I purchased it from her?
SJ for you to purchase the home from your Mom, you'd need to formalize an agreement for the purchase, worry about having a closing, etc. If you use a quit claim deed, you can forgo a lot of details. You'll still have a closing when you go about refinancing the home, but it won't be as detailed. The QC deed would be prepared and filed concurrent with the closing.
You're not wrong - it's essentially the same thing whether you do it through a formal purchase or with the simplicity of the quit claim deed.
You're not wrong - it's essentially the same thing whether you do it through a formal purchase or with the simplicity of the quit claim deed.