Mortgage & Title, one spouse vs both spouses | TigerDroppings.com

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AutoYes_Clown
Alabama Fan
Baton Rouge, LA
Member since Oct 2012
1959 posts

Mortgage & Title, one spouse vs both spouses



I got pre-approved without the spouse's income. The broker tells me I have the option of putting my spouse on the mortgage note or not, and the option of putting my spouse on the title or not. Broker says that putting the spouse on the mortgage note does nothing for us except increase the max qualifying home purchase amount... which we don't need, we won't even max out what I qualified for.

So what are the benefits/negatives of having both spouses on mortgage note? What are the benefits/negatives of having both spouses on the title?







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rmc
LSU Fan
Zachary, LA
Member since Sep 2004
22559 posts
 Online 

re: Mortgage & Title, one spouse vs both spouses


In louisiana, not a ton. Community debt.

ETA:

Effects of 1 spouse - credit report/score may be different. Not sure if it will be better or worse for either. There may be some consequences during divorce depending on how the property is acquired (w/ separate property or not). It's slightly cheaper for foreclosing creditor to foreclose and possibly easier because they only have to get service on one spouse.

Liability - separate or community debt it can be satisfied from community property (so income from either party). If its separate and there is a pre-nup of complete separateness I fairly certain the non-signing spouse would escape liability.



This post was edited on 3/23 at 7:41 pm


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AutoYes_Clown
Alabama Fan
Baton Rouge, LA
Member since Oct 2012
1959 posts

re: Mortgage & Title, one spouse vs both spouses


Thanks for the reply (didn't see your ETA at first).

Do you think its beneficial to keep one spouse on the mortgage to free up credentials for securing other personal loans later... like auto loans?






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ZereauxSum
LSU Fan
Lot 23E
Member since Nov 2008
8800 posts

re: Mortgage & Title, one spouse vs both spouses


quote:

Do you think its beneficial to keep one spouse on the mortgage to free up credentials for securing other personal loans later... like auto loans?


In my opinion you should keep her off the note because it will help her DTI if you two want to borrow in her name only later on. Also, in the event that something goes horribly wrong and you have to default, only your credit gets obliterated.

I imagine putting her on the title will make succession/probate easier in the event of your death, but I don't know to much about pros/cons of including the spouse on the title. My wife and I have always owned everything jointly FWIW.



This post was edited on 3/25 at 9:54 am


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Catman88
LSU Fan
Baton Rouge, LA
Member since Dec 2004
40065 posts

re: Mortgage & Title, one spouse vs both spouses


Well obviously you are pre-approved... AutoYes Clown.

Makes no difference but can improve her credit to have the house on it. Or hurt both you if you default. If you get divorced it doesnt really matter. I would have her on it no matter what.



This post was edited on 3/25 at 10:02 am


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Catman88
LSU Fan
Baton Rouge, LA
Member since Dec 2004
40065 posts

re: Mortgage & Title, one spouse vs both spouses


quote:

it will help her DTI


Has it been established that she has an income yet? DTI isnt taken in for a CRA but matters on a loan. But we dont know if the spouse has an income or not.

ETA: I take it that

quote:

except increase the max qualifying home purchase amount


most probably means she does have an income though.



This post was edited on 3/25 at 10:05 am


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ZereauxSum
LSU Fan
Lot 23E
Member since Nov 2008
8800 posts

re: Mortgage & Title, one spouse vs both spouses


quote:

most probably means she does have an income though.


Yeah that was my assumption.

That's a good point about the positive effect on her credit report. Having a mortgage in good standing in addition to whatever else she has would help so it could be a wash. I suppose it comes down to whether or not they have plans to do additional borrowing in the near future.






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AutoYes_Clown
Alabama Fan
Baton Rouge, LA
Member since Oct 2012
1959 posts

re: Mortgage & Title, one spouse vs both spouses


Thanks for the replies everyone. Yes, spouse has income and could use a better credit rating. Right now the amount of home we want is 23% DTI on me, 11% on both incomes.

Of course we want to be able to borrow later... im currently eyeing a $20k bitcoin setup






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