I had a closing this evening that involved a non-borrowing spouse. One of the questions that I'm typically asked is:
'Why do I have to sign anything? I'm not on the loan.'
The concern is genuine, and I give a brief explanation. Along with their concern is the question:
'Will I be obligated to pay this loan?'
Good question. The Notary Signing Agent is not supposed to give legal advice. But the answer to the question is outlined in the Deed of Trust. So I simply point it out to the borrowers and it puts their mind at ease. On their particular Deed of Trust it was outlined in paragraph 12:
This is why it is so important that the non-borrowing spouse does not sign the Note.
The location of the paragraph may be different, but the information regarding the non-borrowing spouse's obligation to pay should be contained somewhere within the document. I put my finger on it, let the borrowers read it, and everything should go smoothly.