What's the rules for a quit claim deed and time restraints?

tinaspeikers · Joined: 11 Oct 2006 Posts: 1 1.35 Dollars($)

My husband and I were married in April of ths year. He already owns 2 homes seperately, and we are getting ready to purchase another home together this fall. The money for the down payment is from his seperate account. We cannot apply for a mortgage loan together because I don't have flawless credit and it might make the interest rate higher (What he's told me). He told me that he would add my name to the house after he got the mortgage by quit clain deed. Now he is changing the story, saying that the mortgage company cannot do a quit claim deed until one year after the purchase. He is a lawyer, so I feel neive and vulnerable. Is he correct in what he is telling me, or is he trying to keep my name off the house?
Thanks,
Tina

Guest 0.10 Dollars($)

Hi Tina,

It is quite true that if your credit is not good then the mortgage options will be lesser.

Also the rates charged by the lender will be higher than normal because of the lower credit score that you may have.

Gary

Guest 0.10 Dollars($)

Hi Tina,

I also agree with Gary about your credit score needed to be on the higher side to get competitive rates for the mortgage.

But I am not sure if your husband is clear about quit claim deeds. By quit claim deed your husband can include your name to the title of the house even before one year of the purchase. And quit claim deed will be created by your husband and not the mortgage company. He must have misunderstood the information about use of quit claim deeds.

If you explain it clearly then I am sure he will understand about the actual use of the deed.

Thanks

jameshogg · Posted: Wed Oct 11, 2006 6:54 pm Post subject:

Hi Tina,

Please have a look at the article on Quit claim deeds . It will give you the complete idea about its proper use.

Thanks
James

sara · Posted: Wed Oct 11, 2006 9:55 pm Post subject: RE:

Hi Tinaspeikers,

As your husband is a lawyer, I believe, he knows very well that a mortgage company does not do a quit claim. Rather, once a borrower takes a loan, he should inform the lender before doing the quit claim.

I am not quite sure as to whether your husband is keeping your name off the house. Perhaps the company has put forward the condition that they will not allow your husband to add your name to the title before a year. You need to talk to him on this issue, tell him to be free and frank as to what exactly he wants.

Thanks,

Sara.

mcole · Posted: Thu Oct 12, 2006 5:34 am Post subject:

Hi Tina,

I totally agree with Sara. Being an attorney, your husband should be very familiar with a Quit Claim Deed and how they are used. So, there seems to be a miscommunication somewhere.

But I might suggest something else. Go ahead and apply for a loan together with your husband. There are many lenders that go by the credit of the primary borrower. In which case, it would not necessarily affect the interest rate -- even with you on the loan.

However, if you have any collections or judgments, those can be an issue and would have to be dealt with.

It's just something to consider. And it all depends what all in on your credit report. If it works, then your set and don't have to worry about adding you to title. But if it doesn't, so what? You can always go back to your husband doing it in his name alone.

Just my 2¢

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