If you add someone to your mortgage then you and him/her will be mutually responsible for the home loan. Both of you will also share equal rights in the property and its value. Usually when people enter into a committed relationship they prefer to add their partner to the mortgage. However, this process is not as simple as it sounds. The mortgage company will need you to submit detailed information on the person you wish to add to the mortgage. It is recommended that you follow the steps listed below to properly add another person to your existing mortgage.
Contact the person first before adding his or her name
It is recommended that you contact the person and have a detailed discussion before adding his or her name to your mortgage. You need to discuss the worth of the house, as well as the exact amount which is still owed on the mortgage. The equity that has been built up also needs to be thoroughly discussed. Both need to review the credit reports and credit scores as well. Before moving any forward, it is advised that you discuss how you want to address the equity in the house. Protecting the equity in the house before adding someone to the mortgage is a practical step for your own benefit. Consulting an attorney or mortgage expert in this case can also be beneficial.
Contact the people at your mortgage company
After talking to the potential partner, it is time for you to contact your mortgage company. Explain to them that it is important for you to add another person to your mortgage and then provide them with all the relevant details. You will then be guided by your lender, after the company agrees to your request.
Take offers from lenders
Your existing lender might need you to refinance your mortgage in order to add another person to it. If that is not possible, discuss other possibilities and take offers from other lenders.
Complete the relevant paperwork
You need to complete the relevant paperwork for yourself and the person you will be adding to your mortgage.
Information on income, debts and assets are all required to support documentation such as pay slips, tax returns and bank statements.
Apply for a new loan
You now need to apply for a new loan and wait for approval before closing the loan with the person you have to add to the mortgage.