TV Mini-Series: “The Borrowers” (Episode 2)

FADE IN:

Ring Ring.

OMC: “Hello, this is Mike from Ocean Mortgage Capital – How can I help?”

CLIENT: “Hi – My Friend would like to borrow money to replace the roof on her house. She has a roommate who agreed to be a co-borrower.”

OMC: “Is your friend unable to qualify for a mortgage on her own, and so her roommate is willing to co-sign on her loan?”

CLIENT: “Yes, exactly. My friend’s husband should be able to qualify for a mortgage, but he doesn’t think it is necessary to borrow money to fix the roof.”

OMC: “Well, your friend and her husband would both need to sign the mortgage – which means they both need to cooperate and show they are willing to allow a mortgage to be secured by the home.”

CLIENT: “Tell me more about how her roommate can help my friend with this loan.”

OMC: “To be a co-borrower, your friend’s roommate could apply for and be jointly liable for the loan, but would typically have ownership in the property (lenders prefer occupying or non-occupying co-borrowers to also be on title).”

CLIENT: “The roommate does not have any ownership interest in the property.”

OMC: “If not on title, then the roommate could be a co-signor who guarantees all obligations under the loan, jointly with your friend. However, this loan cannot proceed unless your friend’s husband agrees to sign the mortgage – whether he is a co-borrower or not.”

CLIENT: “That will never happen.”

OMC: “Then unfortunately neither will your friend’s loan.”

Here’s the Point: Before obtaining a loan on your primary residence, make sure your spouse is willing to sign the mortgage document – otherwise the lender will not close.
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