Posted on: 19th Nov, 2007 07:12 am
I am planning to do a quit claim to my brother, who will then refi the home at a lower interest rate. I will continue to pay and live in the home, and once I get my credit together, he will quitclaim it back to me. Also does he need to get pre-approved for a loan prior to the quitclaim?
hello atlanta,
if the mortgage is in your name then you have to take your lender's consent before doing a quit claim.
if your brother does a refinance in his name, then are you planning to get the mortgage in your name again once you have a good credit?
i am not sure if you can do that. you should consult your lender before anything else because there are certain loans where the mortgage is called due as soon as there is a transfer of ownership.
what type of mortgage do you have?
your brother has to qualify for the refinance and it depends on his credit how much lower interest rate he might avail.
if the mortgage is in your name then you have to take your lender's consent before doing a quit claim.
if your brother does a refinance in his name, then are you planning to get the mortgage in your name again once you have a good credit?
i am not sure if you can do that. you should consult your lender before anything else because there are certain loans where the mortgage is called due as soon as there is a transfer of ownership.
what type of mortgage do you have?
your brother has to qualify for the refinance and it depends on his credit how much lower interest rate he might avail.
Hi Atlanta,
Welcome in this forum.
You can quitclaim the home to your brother but you need to take consent from the lender as Jenkin has mentioned above.
For the refinance, your brother has to qualify for it. So does he have a good credit score?
Suppose you quitclaim and wait for your credit to be improved and then your brother does not want to quitclaim the property back to you, then you will have nothing to do. So think twice before taking any decision. Can I ask you why are you quitclaiming even when you will pay the mortgage? If you make all the payments on time, that will help you to improve your credit.
Thanks,
Larry
Welcome in this forum.
You can quitclaim the home to your brother but you need to take consent from the lender as Jenkin has mentioned above.
For the refinance, your brother has to qualify for it. So does he have a good credit score?
Suppose you quitclaim and wait for your credit to be improved and then your brother does not want to quitclaim the property back to you, then you will have nothing to do. So think twice before taking any decision. Can I ask you why are you quitclaiming even when you will pay the mortgage? If you make all the payments on time, that will help you to improve your credit.
Thanks,
Larry