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 kwehling
Joined: 01 Sep 2008
Posts: 2
2.03 Dollars($)
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 Posted: Mon Sep 01, 2008 4:11 pm Post subject: quitclaim and home equity or buy outright and mortgage |
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| My husband and I are buying a house that belonged to his grandmother in the state of NY. Now that she has passed the house belongs to her 4 children. We were wondering if there are any advantages to doing a quitclaim deed and then obtaining a home equity loan to pay them the agreed upon amount. Or should we go the traditional route of buying the house and paying them with a mortgage. Currently, there is no mortgage on the house. They are all alright and trust us to pay them even though they would be technically signing over rights prior to receiving money. |
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jameshogg
Joined: 20 Dec 2005
Posts: 5167
Location: nevada
645.98 Dollars($)
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| Posted: Mon Sep 01, 2008 9:59 pm Post subject: RE: buying with a mortgage |
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Hi kwehling,
Welcome to forums.
I think you should go for a mortgage in order to buy the home. But what I didn't get is, do you want to pay the other heirs their share of interest in property using the same mortgage loan?
It's good that the others have agreed to sign over their rights prior to receiving money. But if you'd like to pay them and you don't get a mortgage sufficient enough, then you may have to take out an equity loan. However, see that you can afford both the loans.
Thanks |
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kwehling
Joined: 01 Sep 2008
Posts: 2
2.03 Dollars($)
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| Posted: Tue Sep 02, 2008 9:44 am Post subject: re: quitclaim |
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| The family is asking far less than the assessed value of the house. We wanted to take out 60,000. $40,000 would go to the family and $20,000 would go towards renovations. At this amount the loan would still be less than the mortgage of the house we just sold. I wanted to skip the hassel of a closing date so far in the future and closing fees associated with a traditional mortgage. |
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liaoyu03
Joined: 09 Sep 2007
Posts: 166
4.18 Dollars($)
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| Posted: Wed Sep 03, 2008 8:33 am Post subject: |
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| yes, do a evaluation for the house is essential. |
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sara
Moderator
Joined: 05 Jul 2006
Posts: 1844
Location: New Brunswick, New Jersey
350.09 Dollars($)
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| Posted: Fri Sep 05, 2008 3:46 am Post subject: RE: buying a home with mortgage |
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Hi kwehling,
Welcome to the forums.
| Quote: | | The family is asking far less than the assessed value of the house. |
The assessed value of the property is the value against which your property taxes are calculated. In order to get a mortgage, the appraised value of your home is necessary.
| Quote: | | I wanted to skip the hassel of a closing date so far in the future and closing fees associated with a traditional mortgage. |
Whether you go for a home buying mortgage or equity loan, both would require a closing process. So, I'm afraid you can't get away with it.
Take Care |
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