If your wife was not included in the loan application, you should be able to just quit claim her off the title once the divorce is final. From what you’re saying, though, it sounds as if she may have been included in the loan, and if that’s the case, the typical course of action is to do a refinance in your name only once divorce is final to get her off loan and title. Look at your last loan package and see if she is listed on the note and truth in lending. If so, she’s on the loan.
You are right to be confused. You believe you were the only applicant for the mortgage loan, yet your wife’s name appears on closing documents. You must clarify this discrepancy: bring your closing documents to your attorney for review.
Once you determine if your wife is a part of the mortgage loan or not, then your attorney can properly advise you on how to proceed.
If your wife is indeed on the mortgage loan then, YES, you would have to refinance to remove her from the mortgage.
If her name does not appear on the mortgage, then your attorney can advise you on the best way to proceed once she reviews the DEED. Divorce statutes are different from State to State and IMHO this question is best resolved by your local attorney representing you in the Divorce case.
Hope that helps! Trevor Curran NMLS #40140