Springfield, PA · Member since 2014 · 30 posts · 1 vote
Hey all,
I'm about to buy a new home for my wife and I and am wondering about any benefits/cons to putting her name on the mortgage with mine. I was originally thinking it could benefit us to have just my name in the event something bad happened to my credit, at least one of us would still have good credit. I'm the main provider and don't need to have her on the mortgage to qualify.
Any thoughts on why this may be a good or bad idea? What about if something happened to out relationship and we split later down the road? Not that I ever expect that but just curious about all this.
@Joe D. I can tell you right now that you already have a problem, because you make no mention of having discussed this with your wife, and that should have been the FIRST conversation. What does she want?
Next up, we don't know what the laws of your state are concerning property rights and marriage, therefore; as @Rick H. mentioned, you need to seek legal advice.
Over the years we've had properties where I was on title/loans on some properties, my husband others, and our LLC on some, all for different reasons. Some lenders want an LLC, others want individuals, etc.
The point being, you need to find what works best for your specific circumstances.
I would say it Depends. There are some cases where she could "drag down the file" either with debts or low credit, other cases where her inclusion would not do any damage. Regarding her lack of employment, that will not count against her if you apply joint, it would be looked at the same as if she were a homemaker.
I would suggest you find a good originator to work with and start by applying jointly. Once the originator can see the full picture, they can advise if it would be advisable for you to apply sole and separate.
dont do it. some banks offer 10 for you and 10 for her. if you put her on each loan, you can just get 5 homes total. i made that mistake and the only way to get out of it is to refi
You can put her on the deed and not have to put her name on anything at the bank...My wife is the type of wife that if Im buying properties without here involvement she is gonna think I may leave her one day and she is left with nothing...Some women just have this security thing, Im sure if she was the bread winner and didnt want you on any of her stuff it would make you have second thoughts about your relationship as well.
A couple years ago I opened a business and when I went to get incorporated I wanted all the shares in my name....OMG I still hear about that crap...I guess it just comes down to the type of relationship you and her have, she may not care if you put her on it or not. But in my state putting her on the deed is not an issue....
Joe, every situation is different, I have my wife added to one and not on the other. Besides the "dont you trust me" question adding her to the application may help build her credit as well.
As said before add her to the title in case anything happens to you the home will not be placed in probate. Having her on the mortgage from my perspective has no real benefit unless the bank will give you a better interest rate.
Bad practice. Get legal advise from an attorney, not free forums!
Credit refers to your character and debt payment practices. If you start paying bills slowly, you need to change your buying habits. If something happens to your character, your wife will tell you long before the creditors.
I'm about to buy a new home for my wife and I and am wondering about any benefits/cons to putting her name on the mortgage with mine. I was originally thinking it could benefit us to have just my name in the event something bad happened to my credit, at least one of us would still have good credit. I'm the main provider and don't need to have her on the mortgage to qualify.
Any thoughts on why this may be a good or bad idea? What about if something happened to out relationship and we split later down the road? Not that I ever expect that but just curious about all this.
Thanks for any suggestions!
The benefit is for her credit, that's about it. If she is not needed to qualify then she doesn't need to be n the note, but will sign the security agreement as to her marital interests depending on your state laws and she will be on the deed or in title.
If you split, only you are obligated on the mortgage. Assets would be divided and now days much of that is by statute as well as custom under different circumstances. Divorce usually costs both parties in the end. Her not being obligated may not sway her out of the home, you could be stuck paying her way but that you really need to speak to an attorney about. One of you will be granting their interest in the property to the other unless you agree to exclude the property and retain the joint relationship which is pretty rare.
If you did get the property she would be clear of the debt which will make it easier for her to obtain future financing. If she were on the note it can hinder her ability to borrow.
I'm pretty sure there aren't any divorce attorneys from your area on this site.
Marital property laws will be in play as well as estate matters, comingling assets can be avoided with proper legal guidance.
I'd think you're starting off on the wrong foot thinking along these lines unless there is a agreement and significant assets in play that others may be entitled to, such as children prior to the marriage.
Bottom line, your note won't have much to do with the disposition of assets or equities except that she will have other equities and less liabilities, that may be offset, it could mean that if liabilities were not equal the difference could be made up in the asset allocations....I doubt you'd get that deep in a customary divorce. See an attorney to set up your assets. So, good luck!
Just to be clear with the terminology. It appears you want her name on the deed. If she is not a party on the Note (the debt), she will still have to sign the Mortgage (the document pledging the house as security for the debt). We know what you mean, and we all use Note and Mortgage interchangeably sometimes, but just to be clear.
@Joe D. I can tell you right now that you already have a problem, because you make no mention of having discussed this with your wife, and that should have been the FIRST conversation. What does she want?
Next up, we don't know what the laws of your state are concerning property rights and marriage, therefore; as @Rick H. mentioned, you need to seek legal advice.
Over the years we've had properties where I was on title/loans on some properties, my husband others, and our LLC on some, all for different reasons. Some lenders want an LLC, others want individuals, etc.
The point being, you need to find what works best for your specific circumstances.
Everyone's circumstance is different. Personally as an investor, I wish from day one we put the person's who income needed to qualify on the mortgage who needed to be on the mortgage. By putting both of our names we
lowered both of our credit scores
we can't divide and conqure for qualifying for the house