How to Remove a Spouse’s Name From a Mortgage
Sometimes, people get a loan for a house by showing two credit scores and two sources of income. The problem arises when the other partner decides to leave the partnership. If you are facing such a situation where your spouse has applied for legal separation then you will have to eliminate your partner’s name from the mortgage.
However, you will have to do it tactfully as any blunder can put your stakes in danger. The simple and most effective way to remove spouse’s name from a mortgage loan is refinancing. Though, it can be difficult but a few simple directions can make it possible.
Instructions
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1
First of all, you will have to arrange your credit report which will show your financial condition. You may need a copy of your FICO score. This is a three digit number which is a proof of your financial status. You must have a strong FICO score, in between 600 and 720, to qualify for a mortgage on your own.
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2
You will have to provide debt-to-income ratio. The good ratio means you are able to pay the mortgage loan without any trouble. This is very important as the lenders need a surety before approving your application for a loan. You must know that you will have to carry the full payment if you are removing the spouse’s name from a mortgage.
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If your debt-to-income ratio is favourable then you should find a good lender who can provide financial help on competitive rates. Instead of going to an individual, it is better to go for banks and other credit unions as they offer you suitable loan plans. However, if your debt-to-income ratio is not good then you will have to seek help from private financial companies.
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Submit your application to two or three lenders and evaluate their loan offers. The most important things you should keep in mind are common fees like origination, discounts and closing costs. Do not apply at more than two or three lenders otherwise too many inquiries can affect your FICO score. Moreover, it can make things difficult for you if you are paying all the loans by yourself.
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After choosing a lender, pick an application form and provide all the required information. You will have to get a copy of quitclaim deed which is necessary to remove an individual from a mortgage.
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Bring your partner to the mortgage closing as it is compulsory to avoid any dispute. The closing attorney will keep the record of everything.
