Posted on: 31st Mar, 2010 03:41 pm
hello
my family is asking me to co-sign to refinance the house. will i have trouble getting a loan if i plan to buy a property in a year or two if i co-sign this?
my family is asking me to co-sign to refinance the house. will i have trouble getting a loan if i plan to buy a property in a year or two if i co-sign this?
Hi igotaq!
Welcome to forums!
You may face problem in getting a new loan for your property if you cosign. After you cosign, you would be responsible for the mortgage payments if the primary borrowers are unable to pay it off. Thus, it will affect your debt to income ratio. Also, if you have a loan on one property, the lenders may not give you a loan to buy a new property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You may face problem in getting a new loan for your property if you cosign. After you cosign, you would be responsible for the mortgage payments if the primary borrowers are unable to pay it off. Thus, it will affect your debt to income ratio. Also, if you have a loan on one property, the lenders may not give you a loan to buy a new property.
Feel free to ask if you've further queries.
Sussane
to cosign is a very treacherous path. you had better have full faith in your borrowing party if you think it's a viable thing to do. keep in mind that any default on the part of the borrower reflects on you as well, and that you are 100% obligated on the debt at all times.
yes, it will affect you when you seek to make your own purchase. any debt that you're obligated on will be considered by a lender to whom you apply for a new loan, whether it's a mortgage, a car loan, credit card, etc.
cosigning isn't something that ought to be commonplace. it takes a brave person to be willing to do so. those who enter into the cosigning realm without foreknowledge are often surprised to find out their credit records are destroyed at a later date.
yes, it will affect you when you seek to make your own purchase. any debt that you're obligated on will be considered by a lender to whom you apply for a new loan, whether it's a mortgage, a car loan, credit card, etc.
cosigning isn't something that ought to be commonplace. it takes a brave person to be willing to do so. those who enter into the cosigning realm without foreknowledge are often surprised to find out their credit records are destroyed at a later date.
thank you both for your help.
As noted above, there are some risks.
If you cosign, you may be able to get your own loan after the mortgage is paid on time for 12 consecutive months and has not been late in late 12 months before the date you apply for your mortgage. Some lender will want verification someone else besides you paid. If there ever were any late payments, you might not get your mortgage.
If you cosign, you may be able to get your own loan after the mortgage is paid on time for 12 consecutive months and has not been late in late 12 months before the date you apply for your mortgage. Some lender will want verification someone else besides you paid. If there ever were any late payments, you might not get your mortgage.
john, is that still a universal truth? it's been quite a while since in encountered anyone in that sort of situation, so i haven't had an opportunity to test an underwriter on it. when i was underwriting, i always gave credit to a potential borrower who could document the required 12 months. hey, i make have used my discretion on an occasion or two to allow it with less than 12 months' evidence - it wouldn't surprise me.