## Can You Be Added to a Mortgage?
When you’re looking to buy a home, you may not have the financial means to qualify for a mortgage on your own. In this case, you may consider asking someone else to be added to your mortgage application. This can help you qualify for a larger loan amount and get the home you want.
There are a few things to keep in mind if you’re considering adding someone to your mortgage. First, you need to make sure that the person you’re adding is financially responsible and has a good credit score. This is because the lender will consider the financial situation of both borrowers when making a decision on your loan application.
Second, you need to decide how you want to title the property. If you’re married, you can title the property jointly with your spouse. This means that you will both be responsible for the mortgage payments and will have an equal share of the equity in the home. If you’re not married, you can title the property in both of your names as tenants in common. This means that you will each own a separate share of the property and will be responsible for your own mortgage payments.
Finally, you need to be aware of the tax implications of adding someone to your mortgage. If you’re adding a spouse to your mortgage, you will not have to pay any additional taxes. However, if you’re adding someone who is not your spouse, you may have to pay gift tax on the value of the gift.
**Benefits of Adding Someone to Your Mortgage**
There are several benefits to adding someone to your mortgage. These benefits include:
* **Qualifying for a larger loan amount:** When you add someone to your mortgage, you can qualify for a larger loan amount. This is because the lender will consider the combined income and assets of both borrowers.
* **Getting a better interest rate:** If the person you’re adding to your mortgage has a good credit score, you may be able to get a better interest rate on your loan. This is because the lender will view you as a less risky borrower.
* **Building equity faster:** When you add someone to your mortgage, you can build equity faster. This is because you will be paying down the loan balance faster with two incomes.
**Drawbacks of Adding Someone to Your Mortgage**
There are also some drawbacks to adding someone to your mortgage. These drawbacks include:
* **Being responsible for the mortgage payments:** If you add someone to your mortgage, you will both be responsible for the mortgage payments. This means that if the other person stops making payments, you will be responsible for the entire amount.
* **Losing your home if the other person defaults:** If the other person defaults on the mortgage, you could lose your home. This is because the lender can foreclose on the property and sell it to satisfy the debt.
* **Tax implications:** If you’re adding someone who is not your spouse to your mortgage, you may have to pay gift tax on the value of the gift.
**Deciding Whether to Add Someone to Your Mortgage**
Deciding whether to add someone to your mortgage is a personal decision. There are both benefits and drawbacks to consider. If you’re considering adding someone to your mortgage, it’s important to weigh the pros and cons carefully before making a decision.
## **How to Add Someone to Your Mortgage**
If you decide that you want to add someone to your mortgage, there are a few steps you need to take. These steps include:
1. **Get pre-approved for a mortgage:** The first step is to get pre-approved for a mortgage. This will give you an idea of how much you can borrow and what your monthly payments will be.
2. **Find a lender who allows you to add someone to your mortgage:** Not all lenders allow you to add someone to your mortgage. You will need to find a lender who is willing to work with you.
3. **Complete a mortgage application:** You will need to complete a mortgage application with both borrowers. The application will ask for information about your income, assets, and debts.
4. **Provide documentation:** The lender will need to see documentation to verify your income, assets, and debts. This documentation may include pay stubs, bank statements, and tax returns.
5. **Get approved for the mortgage:** Once the lender has reviewed your application and documentation, they will make a decision on your loan application. If you are approved, you will be able to close on your loan and add the other person to your mortgage.
## **Alternatives to Adding Someone to Your Mortgage**
If you don’t want to add someone to your mortgage, there are other options available to you. These options include:
* **Getting a co-signer:** A co-signer is someone who agrees to repay your loan if you default. This can help you qualify for a larger loan amount or get a better interest rate.
* **Getting a guarantor:** A guarantor is someone who promises to repay your loan if you default. This is similar to a co-signer, but the guarantor is not legally obligated to repay the loan.
* **Getting a gift of equity:** A gift of equity is when someone gives you money to help you buy a home. This can help you qualify for a larger loan amount or get a better interest rate.
## **Conclusion**
Adding someone to your mortgage can be a good way to qualify for a larger loan amount and get the home you want. However, it’s important to weigh the pros and cons carefully before making a decision. If you’re not sure whether adding someone to your mortgage is the right decision for you, talk to a financial advisor.