Mortgage & Title Question

[Tohru]

Currently the mortgage for our house is only in my husband's name, but we are both on the title. We are looking at buying another property and then selling this one after moving, however the new mortgage will just be in my name.

 

Today I applied to be prequalifed and the mortgage broker asked if I am on title for any other properties. Since I am, does this mean that they will take into consideration that I'm on title of our current house and not approve the mortgage? Should we remove my name from the title before trying to buy another house?

 

Thanks.

[ThisIsTheDay]

I would *think* that your name on the title is completely irrelevant, unless you want to count it as an asset. The fact that your dh is the mortgage holder on the first house has no effect on your application or qualifying for a loan on the second house.

 

To be sure, why not just ask your broker? That's what he's getting paid for! (You don't want your name off the title, even temporarily--what if something awful and unexpected happened to your husband, and then the house would go into probate.)

[Mommyof4ks]

I too would ask your broker. It depends on the state I suppose. We are a community property state, so even if your name is not on the title or the mortgage you could end up responsible for payments if the property was bought during the marriage (had that happen to a relative). In our state just being married would make it hard to get a second loan unless the couple has the income to cover both mortgages.

[StaceyinLA]

And I'm not 100% (I worked for a real estate attorney on and off for a while), but I think it won't matter with your qualifying as long as the income-debt ratio isn't too high, and the credit scores ARE high.