Posted on: 22nd Aug, 2007 09:18 am
my husaband and i own a home with our aunt. we are seeking a loan to do home inprovemnts and don't want to put my aunt on the loan, just us. the loan officer suggested removing her name from the title though a quit claim deed and securing the loan and then putting her back on. is this a good idea? is it expensive and involved? thank for your help.
Nicky,
As you do not want your aunt to be put on the mortgage, the loan officer has stated that she quit claims her ownership to you and then both you and your husband get the loan.
This way you will be able to qualify for a larger loan amount based on the value of the house. If your aunt remained on the title then your share in the house would have been less and thus the loan you'd be able to qualify for have been lower.
"removing her name from the title though a quit claim deed and securing the loan and then putting her back on."
I am not sure about putting her back on the title after the loan is taken. As that would result in title change and lender can require the mortgage to be refinanced or paid off. Ask LO to clarify how you can add your aunt to the title after the mortgage is taken without the need to refinance
As you do not want your aunt to be put on the mortgage, the loan officer has stated that she quit claims her ownership to you and then both you and your husband get the loan.
This way you will be able to qualify for a larger loan amount based on the value of the house. If your aunt remained on the title then your share in the house would have been less and thus the loan you'd be able to qualify for have been lower.
"removing her name from the title though a quit claim deed and securing the loan and then putting her back on."
I am not sure about putting her back on the title after the loan is taken. As that would result in title change and lender can require the mortgage to be refinanced or paid off. Ask LO to clarify how you can add your aunt to the title after the mortgage is taken without the need to refinance
"then putting her back on"
When she will be put back again, lender would ask for the mortgage to be refinanced because of the change in title.
When she will be put back again, lender would ask for the mortgage to be refinanced because of the change in title.
Hi Nicky,
After securing the loan, if you want to put your aunt back on the title to the property, the lender may ask to refinance this new loan. Refinance will be required because of the change in title from the time the loan was taken. Lenders generally require the loan bearer to be the actual owner of the property.
So what your loan officer has suggested will hardly help you here.
After securing the loan, if you want to put your aunt back on the title to the property, the lender may ask to refinance this new loan. Refinance will be required because of the change in title from the time the loan was taken. Lenders generally require the loan bearer to be the actual owner of the property.
So what your loan officer has suggested will hardly help you here.