When you purchase a house, you own the title of your home, which signifies buyers have both the liabilities and legal rights to that estate. Before getting your home, the title company runs an inquiry to confirm there are no questionable title claims to the residential property. After that, if the process went well and you purchased the property, the lender will provide a legal document that transfers homeownership to you.
Nevertheless, suppose you want to change the ownership of the home. In some situations, such as the death of a partner, you might not need to do anything. However, in other circumstances, such as inheritance or divorce, you may need to issue a new document or proceed to court. Changing the title of your home isn’t easy, but it has an advantage and helps prevent title fraud—a form of title burglary.
Can You Change the Title of Your Home?
It is possible to change the title on the property deed, although this is different from modifying the name on a mortgage. The title deed is a legal possession document filed with the federal government, whereas the mortgage is a credit provided by the lending institution.
When you secure a mortgage, the creditor has an interest in your house, and the mortgager can foreclose if you fail to make regular loan payments. Once you repay all the monthly installments, the county federal government typically delivers the property deed to you as the sole owner.
The process for changing title names on the house varies by situation and state; some may need a lawyer or title company to prepare a new document for you.
When do you need to change the title of your home deed?
There are several situations when you want to change the title of your home:
i) You joined in marriage:
If you are getting married and modifying your name, it’s wise to change the home’s title. Furthermore, if you intend to add the spouse’s name to the title of your home, you can typically do this with a quitclaim letter deed. Depending on your home location, you can create a new document yourself. However, in some areas—you may need to notarize it, file it with a county clerk, or hire an attorney.
iii) You get a divorced or end’s your marriage:
Even if you don’t plan to sell a house after your divorce, there might be a name change or one partner may be removed from the homeownership. Depending on your situation, you may resolve this matter by the quitclaim. If you hold a joint mortgage, you can complete this process with the help of a creditor. In all cases, it is best to consult an attorney, if possible.
iii) Your partner dies:
When your partner dies, you might be responsible for some of their debts, but ownership of the property may not require any action. More so, if you own your home as surviving joint tenants, then you don’t need to renew the deed or title. Therefore, it will instantly transfer to the surviving spouse.
However, if you decide to sell the property, you may need a death certificate as your spouse’s name will be mentioned on the document.
iv) You have inherited a house:
If you inherited a home after the death of a loved one, you would need to renew ownership. Also, if the owner already has a beneficiary document, there is a possibility that his beneficiaries can take possession of the property without undergoing probate.
How to Update Title of Your Home on the Credit Record
If you change the title on your property deed, it’s crucial to update it everywhere. However, changing your title name doesn’t affect the credit scores; it is simply added to your existing account.
The most effective way to change the title of your home on the credit report is to update your name on escrow accounts with the lenders. Consequently, your new name will begin to appear on the credit report after a few months. Visit our website to learn more.