Co-signing a Home Loan

Posted by Joel Nash Jan 19, 2007

I often see young couples or sigle people coming to me to inquire about their first home purchase. They are nervous and full of questions. Quite often I direct them to a local mortgage broker in order to get them prequalified for their first mortgage.

However with very little credit established they can find themselves requiring a co-signer in order to be able to get a mortgage at all. For the co-signer this can create some unique risks that they need to be aware. By co-signing the mortgage committment you take ownership of the debt if the person you co-signed for defaults on the loan. This can impact your credit rating and ability to obtain additional credit.

For more questions and answers about being a co-signer on a mortgage visit our very own <a href"http://mortgagesloans.suite101.com/article.cfm/co_signing_on_a_home_loan">Mortgage and Loans</a> writer.