6 Things to Consider Before Co-Signing a Mortgage
However, if you can provide a 12-month history of someone else making a payment on an obligation you co-signed for, most of the time the obligation can be omitted, which would improve borrowing ability.
It means you are literally applying for credit by virtue of supplying income, credit worthiness, payment liabilities and assets for the purposes of procuring credit (i.e. a mortgage). People co-sign for other people to help secure mortgage loan financing, not knowing the full ramifications of what co-signing does for the long-term prospects of obtaining credit in the future.
And a final mortgage tip: Two alternatives to co-signing that substantially help someone else include providing gift funds for a down payment and/or paying off someone else's debt -- both of which improve borrowing ability as loans are made against income.
- Can You Really Get Your Credit Score for Free?
- The First Thing to Do Before Buying a Home
- 19 Confusing Mortgage Terms Deciphered
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts