Can One Person Get a Mortgage With Two Owners?
- A sole applicant who qualifies can obtain a mortgage loan based on her income, credit and down payment resources. Mortgage lenders will ensure that you have verifiable income that meets program specifications. Your prior mortgage history or rental references will be examined to ascertain the manner in which you paid your housing expenses. Your available funds after settlement may strengthen your loan qualification. For example, if your savings will total $3,000 after the closing of escrow and your mortgage payment equals $750 per month, your financial reserves could provide the capacity to cover four mortgage payments. The example would be preferred if your qualifications are borderline, versus an applicant who has less than $500 after the closing of escrow.
- The fields that are marked "borrower" require completion from sole applicants. An application that has joint applicants or multiple borrowers would require information about the co-borrowers. The applicant's banking information, retirement funds, employment history, earnings and other assets are tallied against the applicant's total liabilities to determine if the requested loan amount is affordable. The loan applicant should list the names of each owner on the loan application. The loan application must be signed and dated by the borrower to begin the loan approval process.
- The title records will only reflect the borrower's name on the mortgage note. However, the deed of trust will reflect the borrower's name, as well as the names of the other owner. The mortgage lender will order a preliminary title report and a judgment report for each owner that will be listed on the deed of trust. Judgments that are outstanding and provide the possibility of becoming attached the title must be satisfied prior to the closing of escrow.
- To complete the loan transaction, all owners are required to sign the deed of trust at the closing of escrow. The borrower will be required to sign most of the remaining forms, however some lenders may request additional signed documents from the other owner, such as the settlement sheet. Each owner is required to provide a photo identification. The buyers must present a cashier's check or other form of certified funds during the closing of escrow.
