Posted on: 12th Nov, 2009 12:02 pm
my significant other is not working at the moment. I was approved for a loan to purchase a home. What are the negative implications if i wanted to quit claim the deed to her so she would be on the mtg. What are the benefits? ex. would i have to get approval from her if i decided to sell the house.
Would the lender allow me to quit claim the deed so she will only be on the title.
Would the lender allow me to quit claim the deed so she will only be on the title.
>>What are the negative implications if i wanted to quit claim the deed to her so she would be on the mtg. What are the benefits?
A Quit Claim wouldn't add her to the Mortgage, only Title. She needs to qualify for the mortgage and be on it with you in order to be on the Mortgage Note.
>>Would the lender allow me to quit claim the deed so she will only be on the title.
No, Lenders don't allow that. However, a lot of people have done it. The Lender can't tell Title has been altered unless you miss mortgage payments. Miss payments and they'll starting looking into you more and see the Title was modified, and then the due-on-sale clause can be initiated by them.
A Quit Claim wouldn't add her to the Mortgage, only Title. She needs to qualify for the mortgage and be on it with you in order to be on the Mortgage Note.
>>Would the lender allow me to quit claim the deed so she will only be on the title.
No, Lenders don't allow that. However, a lot of people have done it. The Lender can't tell Title has been altered unless you miss mortgage payments. Miss payments and they'll starting looking into you more and see the Title was modified, and then the due-on-sale clause can be initiated by them.