Adding someone to your mortgage can be a smart financial move if done for the right reasons. Perhaps you’re getting married and want to add your spouse to the mortgage, or maybe you’re buying a house with a friend or family member. There may also be situations where you’re struggling to make mortgage payments and need to add someone with better credit to the loan.
However, before you add someone to your mortgage, there are a few things you should keep in mind. First, you’ll need to qualify for the loan together. This means that both of you will need to have good credit and income. Second, you’ll need to decide how you want to hold the title to the property. There are two main options: joint tenancy and tenancy in common. Joint tenancy means that both of you will own the property jointly, and if one of you dies, the other will automatically inherit your share. Tenancy in common means that each of you will own a specific share of the property, and if one of you dies, your share will pass to your heirs.
Once you’ve decided on how you want to hold the title to the property, you’ll need to contact your lender to start the process of adding someone to your mortgage. The lender will typically require you to provide documentation such as proof of income and employment, as well as a credit report. The lender will also need to review the property’s appraisal to make sure that it’s worth enough to support the new loan amount.
How To Add Someone To Your Mortgage
Adding someone to your mortgage can be a great way to share the responsibility of homeownership or to improve your chances of getting approved for a loan. However, there are a few things to keep in mind before you take this step.
First, you’ll need to make sure that your lender allows you to add someone to your mortgage. Some lenders have restrictions on who can be added to a mortgage, so it’s important to check with your lender before you proceed.
Once you’ve confirmed that your lender allows you to add someone to your mortgage, you’ll need to gather some information about the person you want to add. This information will include their name, Social Security number, income, and debt.
Once you’ve gathered this information, you’ll need to complete a loan application. The loan application will ask for information about both you and the person you want to add to your mortgage. Once you’ve completed the loan application, you’ll need to submit it to your lender.
Your lender will review your loan application and make a decision about whether or not to approve your request to add someone to your mortgage. If your request is approved, the person you want to add will be added to your mortgage as a co-borrower.
People Also Ask
Can I add someone to my mortgage without refinancing?
Yes, you can add someone to your mortgage without refinancing. However, you’ll need to get your lender’s approval before you do so.
What are the benefits of adding someone to my mortgage?
There are several benefits to adding someone to your mortgage, including:
- Shared responsibility: Adding someone to your mortgage can help to share the responsibility of homeownership. This can be especially helpful if you’re struggling to make your mortgage payments.
- Improved credit score: Adding someone with a good credit score to your mortgage can help to improve your overall credit score. This can make it easier for you to get approved for other loans in the future.
- Increased borrowing power: Adding someone to your mortgage can increase your borrowing power. This can make it possible for you to buy a more expensive home.
What are the risks of adding someone to my mortgage?
There are also some risks to consider before adding someone to your mortgage, including:
- Legal liability: If you add someone to your mortgage, you’ll be legally responsible for the debt. This means that if the other person defaults on their mortgage payments, you’ll be responsible for paying them.
- Damage to your credit: If the other person damages their credit, it can damage your credit as well. This can make it more difficult for you to get approved for other loans in the future.
