How to Refinance With a Spouse
If you or your spouse do not qualify for a refinance mortgage alone, you may apply for the loan together. This way, the lender considers both of your incomes when making a lending decision. Before you refinance together, however, you should ensure that both of your names are on the title deed. You should also check that your individual credit ratings will not diminish the possibility of refinancing.
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Instructions
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Check the title deed of your property. Both your name and your spouse's should be on the title to increase your chances of refinancing jointly. Some lenders require borrowers to have both of their names on the title deed for at least six months before refinancing their home, as it prevents people from avoiding foreclosure. If there is only one name on the title deed, consider adding a name with the services of a lawyer.
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Obtain both of your credit reports from the three main credit reporting agencies: Experian, Equifax and TransUnion. When applying for credit, the products available to you depend on your credit score. Those with lower credit scores tend to receive mortgages with higher interest rates, as the bank must compensate for the extra risk. If the bank declines a mortgage based on your credit score and that of your spouse, both of your credit ratings will fall as a result of being refused credit.
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Shop around for loans. If you are refinancing, you should ensure that any new loan has an interest rate that is at least 1 percent lower than your old mortgage. This is to make up for the costs associated with refinance fees. Furthermore, you should only refinance if you have a considerable amount of time left on your mortgage's term. If you do not plan to stay in your home for much longer, refinancing may cost you more than your previous mortgage, even if the new loan has a lower interest rate.
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