Buying a home and i have no idea

6 Replies

Hi there, I was looking for advice. My brother and I want to buy a property as an investment. He got pre approved. Is that posible that my name could be in the title? What about the legal stuff? I am new on investment and we wanted to partner but I don't now anything legal. Any advice?

@Ana Barreda  

You could both apply for a mortgage together and get pre-qualified together. Some lenders may have overlays that don't allow partnerships, but conventional financing will allow you to. 

Ana, the lender doesn't care who is on the title to a property as they will execute a first lien against the property.  Payments don't get made, they take the house.

Neither you or your brother would be able to sell the house without the lender being paid off.  The paperwork you sign at close will acknowledge the lien on the house by both of you as owners, even if the loan is only in your brothers name.

Hope this helps.

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Hey Ana!

If you're income is good enough, I would just let your brother buy the house and then quit claim your name on the deed later on. This will allow you to buy a different house in your name so your debt to income ratio isn't effected by your brothers home. Hence using the banks money to get 2 houses instead of one. There's this clause called the alienation/due on sale clause which the lender can call the note to be paid in full when ownership changes on title. I've worked for the servicing side of loans for Chase for 3 years and we never did anything about it as long as the note was paid on time. Good luck with investing!

As far as having your name go on title, I have never seen a note call due unless you stop payment. I am an investor in you market and I have all my properties in an LLC. All of my investors that I work with will do the same. Building a portfolio can be tricky. Call me anytime to discuss.

@Ana Barreda I would more be concerned about who is going to be doing the work and how those duties get assigned then who is going to be on title.

do you have your acquisition team together?

contractors?

closing attorney?

sales agent?

where are you getting the property from?

anyway, I hope you see my point. 

having said all this, yes you can be on title.....