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Friday, March 29, 2024

On The Beat 4/20/20 - JTS and Co. Mortgage Professionals

Credit: WCBI
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On The Beat 4/20/20 - JTS and Co. Mortgage Professionals
On The Beat 4/20/20 - JTS and Co. Mortgage Professionals

Jeff and Tyler Farnham from JTS and Co.

Mortgage Professionals joins Troy to talk about married applicants.

Troy: welcome to on the beat everyone.

I'm troy thompson.

Joining me in the studio today is jeff and tyler farnham with jts and company mortgage professionals.

Today we're talking all about married applicants.

Welcome to the show my friends.

Nice to see you again tyler.

Okay, talking about marriage applicants, is it requirement that married couples apply together and should they?

J.

Farnham: no, there's not a requirement that they do that.

If you're married and just one person wants to apply for a loan, they can do that.

Should they?

Depends on their situation.

What's their circumstances?

You may have a situation where one borrower has got a really high credit score and the other one has a lower credit score for whatever reason.

It may be advisable in some cases to just focus on that higher credit score borrower, depending on the type of loan we're doing, what their circumstances are.

The higher the credit score with some loans, in theory, the interest rate's going to be better.

It could be significantly better depending on the severity.

A co-borrower's credit score might be so low that it could mean the loan could not be approved jointly.

If they're able to qualify individually, that's something we look at.

If they want apply jointly, we give them both options, let them decide which way is best for them.

Troy: what about if my wife, say, isn't going to be on the mortgage, can i use her income as paperwork to go in the mortgage to make it look better than i can afford it more?

T.

Farnham: typically, you're primary borrower, if you're on the application, we use your income.

You can't use your spouse's income if they're not listed on that application as well.

The only we can use their credit and their income is if they are listed on that application for that property.

Troy: all right.

If my wife isn't on the mortgage, can her name still be on the title of the property, and is she still considered a home owner?

J.

Farnham: yes, because you're dealing with two things.

You're dealing with who's obligated to repay the loan and ownership.

Yes, that spouse can still be listed on the title to the property.

In mississippi, in most cases, they're going to be listed, even if they're not on the loan, they're going to be listed jointly on the deed to the property.

She has 100% rights for the home just like the borrower does, but not necessarily obligated on the loan itself.

Troy: okay.

We've talked previously about home exemption.

Now, if the wife isn't on the mortgage, can she claim the home exemption?

T.

Farnham: basically the property state for mississippi, as long as you are a married couple, you can use that tax exemption on your property.

Even though you may not be on your mortgage note, you're on the deed and the title work on the property and your husband carries the note.

Then you can take that credit as well.

J.

Farnham: yeah, homestead exemption really goes with the property.

Troy: i was about to say that.

J.

Farnham: you have cases where the husband owns the home and the wife owns another home.

Because you're married, you can't have homestead exemption on both properties.

Only on one of those properties.

Troy: interesting.

What about if i'm divorced and both names are still on the deed?

Can i refinance that loan with my ex's name?

J.

Farnham: court will mandate who receives the marital home and they usually will give a timeline as to how soon do i need to come off that property.

Because the person that's not taking the home doesn't want their credit and income and all that tied up with that property long term.

Yes, you could go in and apply to refinance that loan.

At that time, remove that person from the obligation of the note and from the deed at the time.

They usually do that through what's called a quick claim deed.

They'll transfer title off of the deed itself.

A lot of people have the misconception the court said he's responsible for the home.

He's got it.

I'm no longer obligated.

From a lending standpoint, the bank doesn't care.

The lender doesn't care.

You signed a note.

So until you're refinanced and removed from that, you're still equally obligated.

You may have given up your rights to the home, but you were still obligated on that loan.

Troy: interesting.

Can i still purchase a home if i'm going through the middle of a divorce?

T.

Farnham: yes, you can.

But typically we like to go ahead and get the process, and then once your divorce is final, then we will try to close on your file because that way you can see what the divorce decree is going to state that you are obligated for what your spouse is obligated for.

But we can start the process.

J.

Farnham: a lot of times, there's a waiting period.

There have been cases where they needed to go ahead and close on the property before the divorce was final.

Had to be very careful, need a lot of legal advice on that because the spouse could have some rights to the home, to the new home.

You have to be very careful with that.

If you can wait until after the divorce is finalized, that's probably your best move.

Troy: if you want to find out more about jeff and tyler and their company, there it is all up on the screen.

Back after this.

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