Your mortgage document contains information about the financing transaction on the property, the people involved, and the terms of the loan. It is the prime legal contract that ties you to your debt and holds you responsible for the repayment of the loan on the property. But you might ask, how many people can take responsibility of a mortgage? Is it okay to put the name of my spouse as well?
Yes, it is indeed possible. Typically, lenders allow two maximum names on the mortgage contract. This is most common in the case of married couples. But if you are single and want another person to share the mortgage responsibility and future ownership of the home, you may put the name of a co-signer.
The Title and Mortgage Difference
A property may have various owners but not all of them have to be in the mortgage. Yet, the owners are required to sign the mortgage contract to recognize that there is currently a lien on their property. This means that while a property may be owned by multiple people, not all of these people have to be responsible with satisfying the terms of the mortgage.
Are there instances that three or more people will be allowed on a mortgage contract?
Yes, there are. The possibility of having a third party on the mortgage contract is there, although rare. This usually happens when the income of the two applicants cannot suffice the qualification standards set by the lender. These are very special cases as most lenders would simply deny an application if their standards are not met. However, there are instances where two borrowers have the combined capacity to carry the loan but their vague income documents pose barriers to the approval.
Can I remove names from my mortgage contract?
Yes, but it also means renewing the whole loan via a refinance.
Refinancing is basically starting another mortgage process. You need to re-qualify for the mortgage, undergo the same underwriting processes, and your home loan repayment clock restarts. That is why it should be carefully thought who you plan to put in your mortgage contract.
If you, your spouse, or a family member is planning to get a mortgage soon, see to it that you have everything planned out. Pick a home that’s worth your money, find a lender who cares about your needs and not just your business. Most importantly, find a partner who is willing to get you through the whole repayment process.