If the Mortgage Will Be In My Name, and My Spouse Will Not Be a Co-borrower, Will My Spouse Need to Go to the Closing?

May 1, 2017

Yes, with one exception (see below). This situation is really the same as the one in the question just above. Even if your spouse does not co-own the property with you, he or she must also sign the mortgage (which is almost always called a “deed of trust” in North Carolina). When you get a mortgage loan, you convey to your lender a property interest in your house, and your spouse’s potential property rights need to also be subject to the mortgage.

The rule is, “One to buy, and two to sell.”

There is one possible exception to this, that applies only to closings where you are purchasing the property in your name only and simultaneously getting a first mortgage loan for said purchase. If the proceeds for the first mortgage loan are being used for purchase money and closing costs only, it is probably not necessary for your spouse to sign the deed of trust. You will need to discuss this with your closing attorney, to see if the exception applies to you. This exception does not apply to second mortgages to finance part of the purchase price, or to mortgage loans you get later; such as a refinance first mortgage loan, or a home equity line of credit.

Of course, if you are buying real property in your name only, for cash, that is, you are not getting a mortgage loan, your spouse is not needed at the closing.