Whether for estate planning purposes or a new marriage, you may consider adding a second name to your mortgage. Whatever your reason, adding an additional name to your loan can be a time-intensive -- and expensive -- process that involves refinancing your current mortgage. On the bright side, you may be able to add a second person to the mortgage while taking advantage of historically low interest rates.
Check your credit score. Before shopping for a home loan, ensure that all co-borrowers know their credit scores and address any inaccurate information. A credit score of at least 720 usually gets the best mortgage rates -- the lower your score, the harder it will be to get your mortgage refinanced.
Call your bank. Let a customer service representative know you would like to add another person to your loan and you need a quote for refinancing. To add another person to the mortgage, you'll have to refinance. Both of you will have to be qualified for the new mortgage and meet the lender’s qualification requirements to close on the new loan. Make note of your bank’s mortgage rates.
Shop around for the best interest rates and the lowest closing costs -- not all lenders are created equal. You will be responsible for closing costs for the refinanced loan, which can range from 3 to 6 percent. Shop for at least three quotes from different lenders to ensure you are getting the best deal.
After you find the best deal, lock-in the interest rate for your refinanced mortgage. This holds the interest rate for a specific period of time until the closing takes place -- usually in 30 days. Return any requested documents to the bank as quickly as possible -- delays in providing documentation could result in the loss of the quoted interest rate.
Close on your newly refinanced mortgage. After you sign the paperwork and pay the required closing costs, both names will be on the mortgage.
Items you will need
- Seek recommendations about lenders from your family and friends -- referrals can often help you make the best choice when refinancing your loan.
- While refinancing the mortgage makes you both legally liable for the debt, it may not change the property ownership.
- Once added, names cannot be removed from a mortgage without going through the same refinancing process.