Sometimes, an applicant of a home mortgage loan may not fulfill all the criteria required to become eligible for the loan. The applicant may be found lacking in respect of required credit score, income, credit history etc. In such case, one way to get the mortgage loan is to take the help of a co-signer so as to become eligible for the loan. Here we discuss about some cases, where a co-signer can indeed come very handy and can help the applicant to get the home mortgage loans.
• Credit score is very important in determining the eligibility of an applicant so as to obtain a home mortgage loan. Loan request of an applicant with poor credit score is rejected outright. In such case, a co-signer with good credit score enhances the chance of the applicant to become eligible for the mortgage loan.
• Again, it may be the case that the applicant has no credit history at all. In such a situation, lenders may not be willing to offer mortgage loan to the applicant. In this situation, with the help of a co-signer, the applicant may become eligible for the loan.
• It may the case that the applicant may want to get more mortgage loan than actually offered by a particular mortgage lender. In such case, by tying up with a co-signer, the applicant may get the desired amount of loan.
• Another case may arise when an applicant has too many outstanding debts. Lenders may be reluctant to offer loans to such applicants. With the help of a co-signer, that applicant may become eligible for the home mortgage loan.
Lenders usually request their relatives or close friends to become co-signer in their mortgage loans. Young loan applicant with no credit history, may ask their parents to become the co-signer in the mortgage loan. However, co-signer is legally responsible to repay the loans in case of default. So, co-signer must ensure that the loan applicant is trustworthy and is financially in a position to repay the home mortgage loans.