Co-signers - good income is not all!!!

Merline, once again you have proven your the real estate agent to contact in Port St Lucie FL and you know all about co-signing and more. Have a great day and thanks for sharing.

Merline, it sounds so easy "in theroy" until you get into the nuts and bolts of what happens, who it affects and all things considered when someone is co-signing.  Great reminder and update.

Merline,

Great point and great topic. Co-borrowers are full applicants and should be pre-qualified by the lender as carefully as the borrower.

This is to make sure the loan will still be approved when credit scores, income, and debt are "blended" together.

Never assume!!!

Good information about working with co-signers!  Not all are created equal.  I also notice folks are becoming more skittish about becoming co-signers.  A number of them had issues when the homebuyers later walked away from homes in the housing crunch!

I deal with co-signer situations on a regular basis. I spend a lot of time explaining the good, the bad and the ugly. Some folks so never be a co-signer for one reason or another and in these situations, I discourage them.

Make it a great weekend!

This is a very informative post. Fortunately, I have not had any transactions with co signers, but this will be very good information if I have a buyer who is considering a co-signer.

Merline, I have found that people that ask if they can have a cosignor think that is going to cure all. It isn't allowed with all loans anyway. Great post.

The part that amazes me most is that many co-signors have no idea what their responsibility is if the person the signed for defaults.

This is so true -  it's not just about making "enough" money - and co-signers can be denied for other reasons.

Merline,

the RIGHT co signer can be a blessing.

However, the WRONG co signer can really complicate the deal.

Thanks for posting!

Kevin

Good post about co-signing not being a given in this day and age.  While it might have been something lenders used in a pinch, underwriters are really scrutinizing loans now, and co-signers are scrubbed too!

Merline, I think the big problem with co signing is that you are ultimately responsible for the debt. Not a good thing!

Merline, excellent points for buyers to consider when thinking about adding a co-signer to their mortgage.