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Miarita · Oct 21, 2007, 08:24 PM

My husband and I must recently bought a new home. Our mortgage lender informed my husband and I that I did not need to be on the loan. Explain it didn't matter about whose name was on the loan for "entitlement" only the names on the deed, in which both of our names are listed. Is this true? I want to make sure that I was not misleaded into a terrible situation. I am a newly wed and not sure about a lot of legal matters when it comes to marriage entitlement.

Kindly
Miarita...

Fr_Chuck · Oct 21, 2007, 08:28 PM

If you name is not on the mortgage, you don't owe the money, but if your name is on the deed, you have an interst in the home. I can't beelive that the acutal mortgage company said this, was this just the broker?

LisaB4657 · Oct 21, 2007, 08:54 PM

A deed is a document that transfers ownership of property. If you are listed on the deed then you are an owner.

A mortgage is a loan that is used to purchase a home. The mortgage basically consists of 2 major documents--the mortgage and the mortgage note. The mortgage note is the actual promise to pay back the loan. It says that the people who sign the mortgage note promise that they will pay the money back to the lender.

The mortgage is the document that says if the people who signed the note don't pay back the loan when they are supposed to then the lender is allowed to take the home, sell it, and use the sales proceeds to satisfy the loan.

The people who sign the mortgage note are the only ones who are responsible for paying back the loan. But all owners of the property must sign the mortgage, since they have to give permission for the lender to take the home and sell it if the note is not repaid. So if you are an owner but you are not going on the mortgage, that means that you will not have to sign the mortgage note, but you will probably have to sign the mortgage. This often happens when one of the owners doesn't have as good of a credit rating as the other owner(s). If the owner with the good credit rating has enough of an income to qualify for the loan on their own then the lender will often let the mortgage note be in that person's name only, in order to get a lower interest rate.