Q&As
- What is the difference between a real estate agent and a real estate broker?
- What steps do I go through to buy a house?
- How long does it take to buy a house?
- I want to buy a house. I know the property and the seller has an agent. Do I need my own agent or can I negotiate a lower fee if I act as my own agent?
- How much does it cost to use a Buyer’s Agent / Realtor / Broker?
- Working with FHA/203B, RD, VA, Section 184, 203K, Conventional, HELOC, and other types of financing?
- Real vs Personal Property
- Mortgages for Manufactured Homes
- What is a CMA, Appraisal, and AVM?
- Can the Buyer purchase personal property from the Seller?
- Can a mortgage be used to purchase a mobile home?
- What are the basics for handling multiple offer negotiations?
- Are husband and wife required to apply jointly for a mortgage?
- How do I prepare for a cash purchase?
- Do I need flood insurance?
- Where can I research flood maps / areas?
- To whom should I write the earnest money check?
- Should I buy a residential service agreement (i.e. home warranty)?
- Assuming you’ll be obtaining mortgage financing (i.e. not paying cash), here’s a list of steps to buy a house:
- Do I also need an attorney?
- How does the MLS help buyers?
- What is the MLS?
- What’s the difference between a Pre-Qualification Letter and a Pre-Approval Letter?
- When do I apply with a mortgage lender?
- What is Owner’s Title Insurance (OTI)?
- What is Lender’s Title Insurance (LTI)?
- What is title insurance?
- What does a title company do for Buyers?
- How can Harrah Realty help me as a Buyer?
- How much does it cost to buy a home?
- Do you work with out of town clients?
- Can you help me purchase or build a new home?
- Do you work with First-Time Home Buyers?
- What is a lease purchase or an option purchase?
Are husband and wife required to apply jointly for a mortgage?
There are some situations where you may want or need to apply for a mortgage in only one of your two names. (In the text below, the words “husband” and “wife” could be switched.)
Example Scenarios
One example is if the husband has good credit and makes all of the income, and the wife has very bad credit (e.g. unresolved identity theft, significantly overdue medical bills, etc.).
Another scenario is if the wife’s credit is significantly lower than the husband’s but not so bad that she’d be denied. In this situation, they may be jointly penalized with a higher rate for having a higher credit risk (higher combined vs. lower with husband only).
The husband may also need to apply without including the wife’s information if she is not allowed to borrow (e.g. illegal immigrant).
Applying Separately
The husband can apply for the mortgage without including the wife’s credit and financials, although he still would need to disclose that he is married and provide some of the wife’s information for the sake of the title/legal documents.
Signing Jointly
At closing, the husband will sign both the mortgage and the promissory note. The wife will be required to sign the mortgage (what gets filed at the county) but will not sign the promissory note (the promise to repay), since she didn’t apply for the loan.
Death of the Borrower
If the note is still outstanding (i.e. not paid off) at the time of the borrower’s death, the surviving spouse will need to pay it off or refinance in her own name in order to continue owning the property.
In Indiana, the bank can’t evict the spouse immediately, but they can eventually proceed with foreclosure if the payments aren’t being made per the terms of the note.
Ultimately, in the event of death to any person on a note, it’s advisable for the surviving spouse to discuss the situation with the holder of the note and/or seek the advice of an attorney.