What would happen to your home mortgage loan in this case?

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Say if me and a co-buyer buy a home together (both first-time home buyers), and get a conventional loan from a bank. If later, one of us wants to take our name down the title, would that be allowed? Would the bank re-acess the other person’s credit and issue a new loan to them? What would happen if that person’s credit is not enough to pay for the whole house?

Should I go straight to the lender or go through a loan agent? What are the traps I should be careful about before I put pen to paper? Which option from your experience and knowledge is better( FHA or Conventional)?

8 Comments
  1. Reply
    Judy
    January 27, 2011 at 4:28 am

    You could get your name off the title, but not off the mortgage until it’s paid off, either by paying it all, selling the house, or the other person getting a new mortgage. If they can’t qualify for a mortgage by themselves, or even just don’t want to try, you’re stuck with it.

  2. Reply
    Big daddy
    January 27, 2011 at 4:54 am

    here’s the biggest thing to understand with buying a home. The mortgage is actually two parts. The note and the mortgage/deed of trust (same thing, just some states call it a mortgage, some call it a deed of trust) The note secures the financing of the loan, whomever signs this is liable for the loan and this is reflected on their credit report. The mortgage/deed of trust, ties the note to the property. Depending on state laws, either one of you or both of you will be signing this document as whomever is going to be on the deed of the property needs to sign the mortgage. After closing, the lender does not care who is deeded in and out of title, they will not run your credit or alter the terms of the financing, but you must be aware that both of your could deed the home to someone else, but you would still be liable for the payments as you signed the note. The only way to get both names off of the note would be to either refinance or sell the home outright

  3. Reply
    Rasheed Mohamed
    January 27, 2011 at 5:14 am

    Hey, I am Rasheed Mohamed from Singapore, I got your question on how you need loan I got mine from Abu Abdullah a week ago with monthly repayment schedule and at interest rate of 2% here is the email abu_abdullahloanfirm@yahoo.com

  4. Reply
    Johnson Fred Joe
    January 27, 2011 at 6:12 am

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  5. Reply
    snowbdr71
    January 27, 2011 at 6:38 am

    If later, one of us wants to take our name down the title, would that be allowed? Yes, this would be allowed by executing a quit claim deed and recording it at the county courthouse. A quit claim deed allows you to remove an owner from title without changing the mortgage terms or re-qualifying.

    Would the bank re-acess the other person’s credit and issue a new loan to them? Not unless you request it. If your goal is to remove your name from the title AND the mortgage, then yes, the lender will re-qualify the remaining owner based on only their credit and income, etc. This would essentially be a refinance.

    What would happen if that person’s credit is not enough to pay for the whole house? Then it would not be possible to have you removed from the mortgage because the other person would not be able to qualify for the mortgage by themselves.

  6. Reply
    Albert
    January 27, 2011 at 7:23 am

    I am Albert Mohamed please beware of scammers and fraud stars they are all over the world i have been scammed so many times until i was introduce to Senator Mavis Wallis a legitimate loan company.

    if you have been scammed before please contact Email senatormaviswallis@yahoo.com

  7. Reply
    Beverly S
    January 27, 2011 at 8:02 am

    Go thru a lender not a broker- less fees. If you have 20% down go conventional- no mortgage insurance required. FHA is better if you have less than 20% down. Rates on both are pretty close. Credit must be at least 620 score. 2 years provable income required. 2 years good rental history. Get pre-qualified with a lender before you start looking- this is free in almost all cases. Do not buy anything on credit- it could wreck your approval. Make sure you get a fixed rate. Good luck!

  8. Reply
    Ben
    January 27, 2011 at 8:53 am

    Shop around to get the best deal on a conventional 30-year fixed rate mortgage. This is the “standard” mortgage that offers very competitive terms for you, the consumer. Needless to say, you get the best deals the larger the down payment (10-20%) and the better your credit rating.
    See what your bank or credit union offers, as well as other local lenders. Mortgage brokers seem to be out of favor these days, but if you get a good recommendation on a broker, see what they can offer. You can also find lenders, information, and calculators on bankrate.com.
    Compare closing costs. Closing costs are always confusing (some things you would pay anyway (like interest), other fees are standard, and yet other fees go straight to the lender’s pocket) but by having some comparisons, you can tell what is a competitive deal in today’s market.
    Make sure you have a loan with no prepayment penalty.
    Avoid adjustable rate mortgages, even if you intend to stay in your house only a few years. ARMs are dangerous in the current economic environment, because although interest rates are very low now, interest rates are being set up to – potentially – spike sharply higher in a few years. Also, ARMs are better (more profitable) for the lender and worse for the consumer – That is why ARMs are sold so aggressively. With an adjustable, you hold all the risk in return for saving only a small amount of money over a short period of time.
    Keep in mind that fixed rate mortgages can actually be exciting and profitable. If you get a fixed rate mortgage now, and if in the future interest rates move even modestly higher, you’ve just saved a lot of money – that is what is exciting and profitable. At worst, you can refinance your fixed rate mortgage if rates go down even further – There are costs associated with a refinance, but the costs are limited and knowable.
    Today’s low rates are an excellent opportunity for homeowners.

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