A lending institution is more likely to loan money when it feels that there is adequate security for its loan. While a lender may make a loan to one person who is to be the co-owner of a home (disregarding the other), most conventional loans require that both owners sign the note and grant the mortgage to secure the loan. (The theory is that payment from two sources is better than payment from one from the perspective of the lender.)
Further, if only one person signs the mortgage to secure the loan but two persons take equal interest in the property, the non-mortgaged owner may still be able to sell or transfer his or her one-half interest free and clear of the mortgage — thereby causing another set of issues for the lender.
Therefore, most conventional loans require both (all) deeded owners to sign the note for the loan and grant a mortgage on the property.
The creation of a Quitclaim Deed can be used to add new ownership structures to a property later, but the creation of such a quitclaim should be reviewed against the stated terms withinthe mortgage contract, as most mortgage contracts forbid changes in ownership until the loan terms are satisfied. Additional information about can be found at Standard Legal’s Quitclaim, Warranty and Survivorship Deeds legal forms software page.