How will you hold title to your new home?
Title is the legal documentation that bestows ownership of real property. This is to be indicated in Part II of the 1003 Uniform Residential Loan Application as “manner in which title will be held.”
The decision of how the title will be held should not be put off until the last minute since it has a great impact on future tax planning, the financial future of the borrower(s) and their respective heirs, and the choice of the lender.
It is most important for the mortgage consultant to work hand-in-hand with the borrower’s financial planner or tax consultant to assist their mutual client in order to make decisions that work best for their particular scenario.
Don’t be confused – title can be help by people who are not “on the mortgage”.
