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What Cumming Home Buyers Need to Know About Getting a Mortgage Co-Signer

What Cumming Home Buyers Need to Know About Getting a Mortgage Co-Signer


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Co-Signer

What Cumming Home Buyers Need to Know About Getting a Mortgage Co-Signer

Cumming home buyers who are unable to get approved for the mortgage loan that you need on your own still have an option. If you can find someone to be a mortgage co-signer, you may be able to get approved for the loan that you need.

However, it’s important that Cumming home buyers understand exactly what this means before you find someone to sign with you.

Reasons Cumming home buyers would need a co-signer

The reason Cumming home buyers would need to have someone co-sign on their mortgage loan is if they’re not able to get approved on their own. There are two main reasons why this happens.

The first, is because the Cumming home buyers have a poor credit score. Having a second person with a strong credit score co-sign on the mortgage can be enough to offset a bad credit score in order to be able to get the mortgage approved.

The second reason why a buyer would need a co-signer is because they’re unable to get approved for the amount of the mortgage that they want. For example, if a recently graduated college student wants to purchase a house they may not be approved for as high of a mortgage as they need. But, if they can get their parent who has a long-standing strong credit history to sign on the loan with them, the loan could be approved.

What does it mean when someone co-signs?

A co-signer on a Cumming mortgage is usually someone who is not going to live at the house. While they do actually sign on the documents, they do not consider themselves an owner of the property.

However, the co-signer does actually own the house along with the main applicant of the mortgage. They are taking on the same risks as if they were taking out the mortgage themselves.

If you have someone co-sign on your mortgage with you and you start defaulting on your payments it is their responsibility to start paying. They are just as responsible for making sure the payments happen as you are in the eyes of the mortgage lender.

If you default on the loan and they do not make up the payments that you have missed, you will be at risk of having your house foreclosed on. This will show on both of your credit reports.

The problems with getting a co-signer

While it might sound like a great idea to get a co-signer on your mortgage there are actually some things you need to consider before taking this step.  While a co-signer may be able to help you get approved for a larger dollar amount, it’s not going to make it easier for you to pay the mortgage if they aren’t helping. If your lender isn’t approving you for that amount because they don’t think you’ll be able to make the payment, there’s a good chance that you might struggle to keep up with those larger payments each month.

Cumming home buyers will want to also keep in mind that if you choose the wrong person to co-sign on your mortgage with you, you could have a problem on your hands. If you are struggling to make payments, your co-signer might decide that they would like to sell the house and they have just as much right to make decisions on it as do you.

When applying for a mortgage, Cumming home buyers have options. Just keep in mind that if you are going to get a co-signer, make sure you are getting the right co-signer.

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