Why would someone need to have a co-signer for their mortgage?
Tighter mortgage qualification rules & high priced real estate have made it harder to qualify for a mortgage these days. Even though they may have a great new job with a decent income and a sizeable down payment they still may not qualify. Having a third party co-sign the mortgage may be the solution.
What does it mean to co-sign a mortgage?
✔️Your name appears on the title of the property
✔️You must sign the mortgage application
✔️You are held accountable for regular payments
✔️You are a part owner of the home
Should I co-sign a mortgage?
It’s a huge responsibility. You are basically becoming a co-owner, you are buying the home alongside the primary buyer. Co-signing is usually limited to parent/child relationships.
What do I need to do to qualify to co-sign a mortgage?
To qualify as a co-signer, your income, debt, and credit scores will be closely examined to determine whether or not you would have the ability to pay off the loan if need be.
What’s a guarantor?
A guarantor is not responsible for the loan, they are just vouching that you will pay it back on time. A guarantor is only responsible for the loan if it goes into default.
What should the co-signer do when making this commitment?
➡️Get copies of all the paperwork
➡️Require access to mortgage account information
➡️Get insurance
➡️Talk to a real estate lawyer about how your taxes and estate will be impacted
This information should not be relied on as legal advice, financial advice, or a definitive statement of the law in any jurisdiction. For such advice, please consult your own legal counsel, financial representative, and/or insurance representative.
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