Buying a Home together – When Being On The Mortgage is a Bad Idea – First Time Home Buyers

Today, I am going to discuss when being on the mortgage is a bad idea if you’re buying a home together. If you are on title, you will have ownership of the property.

1. Your credit is lower than the other person. There are two negatives effects. The first: Mortgage interest rates are qualified off the middle FICO score of the lowest borrower. The second: it might change the loan program, and in some instances you might not qualify

2. The other borrower’s income qualifies for the home loan. No need to provide extra documentation.

3. If the mortgage is not in your name, you are not responsible. This is a great loophole, because if you want to purchase investment property or a second home, you are only responsible for the taxes and homeowners insurance on the property if you reside there and are on title. Only the title makes you responsible for the taxes and insurance. Together, as a team, you can accomplish more with the proper strategy and preparation.

To work out your mortgage strategy for the best possible situation, please call me (Phil Ganz) at 617-529-9317.

Phil Ganz (117 Posts)

Philip D. Ganz is a Boston Mortgage Broker and Boston Home Loan specialist. For information, expertise, consulting, or advice about home loans, refinancing mortgages, or commercial property loans, contact Phil with no obligation: 617-529-9317

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