In this post, we’re going to be answering the question: who can you add on a title when you’re getting a mortgage? You might be surprised how many times, when you’re in the middle of a mortgage, this question comes up.
Of course you can. If you’re getting a mortgage, you can absolutely add your spouse to the title.
You can have your spouse on the title even if they’re not on the mortgage. However, if they’re on the mortgage, if they’re on the loan, they have to be on the title because you have to have rights to the home in order to encumber the home by getting a loan on it. This is true for any co-borrower, even if it’s not your spouse.
This is absolutely possible; however, the spouse not on the title would need to sign some forms. A spouse would sign a disclaimer deed and a non-spouse would sign a quitclaim deed to say they are not claiming any interest, any ownership, to the property. It should be noted that this might be a bit different state to state since there are a lot of different deeds in each state. Make sure you check with your real estate attorney about this.
This is another thing that’s good to be aware of. If you’re in a community property state this means that if your spouse dies and you’re not on the title then the house would go to you. Arizona, for example, is a community state property.
Typically, when someone asks about putting the title in a trust we suggest that we close in the person’s name and then transfer it to the actual trust. You can close in the name of a trust but we suggest doing it this other way, since there’s usually a review process that the bank needs to do for your trust. On top of this, some banks won’t allow you to close in the name of a trust so we suggest you check upfront with your bank if this is something you’re interested in doing.
You definitely want to seek a real estate attorney’s advice when dealing with any change of title. There’s lots of situations you’ll want to avoid and many different ways you can handle things, and an attorney will help make the whole process very smooth whether you’re looking to transfer the title into a trust to a spouse, a family member, or anyone else. If you have any questions about this or anything else mortgage related don’t hesitate to give us a call at (602) 535-2171.
Thanks for listening and reading the Mortgage Brothers Show. Let us know if you have any questions you’d like us to answer on this podcast. You can email your questions to Tom@AZMortgageBrothers.com or Eddie@AZMortgageBrothers.com.
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Signature Home Loans LLC does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Signature Home Loans NMLS 1007154, NMLS #210917 and 1618695. Equal housing lender.BACK TO LIST