Co-Signing? Consider These Points


Real Estate News

Co-Signing? Consider These Points


Written By: David Reed
Wednesday, November 20, 2019

The first is realizing what happens if someone you co-signed for defaults on a loan. A lender typically wont foreclose on a property until two or three payments are showing up as more than 30 and 60 days past the due date. A single late payment wont start foreclosure proceedings but more often than not when these payments become seriously delinquent the co-signer remains in the dark until things start to deteriorate rapidly. If you co-sign, make sure you get copies of monthly statements for the mortgage and monitor them closely.

Another thing to consider >

Opening up new credit accounts will also affect your credit balances. By co-signing on a mortgage, the new payment, including principal and interest, taxes, insurance and mortgage insurance when needed, will be tacked on to your own personal debt. Should you decide to apply for a new mortgage or other larger purchase on credit, the amount you currently owe can affect whether or not you can obtain an approval.nbsp;

Maybe a gift would be a better option? To help someone qualify by co-signing, youre just as responsible for the mortgage as the primary borrower. Instead of co-signing, and you have the funds available, consider providing some financial assistance in the form of a gift. This would lower the amount borrowed and make it easier to qualify. Providing a gift also leaves out any longer-term solution. Co-signing means youre on the existing note. A gift can help but doesnt affect your credit lines. And if you do agree to co-sign, ask if this would be a long or short term situation. Do the primary borrowers need help as it >

And one final note here about co-signing. If one or both of the primary borrowers has damaged credit, co-signing wont help. When there are multiple borrowers on the same application, lenders use the lowest middle credit score of all the borrowers. If your credit score is 780 and their qualifying score is 500, you credit wont help. The lender will use the 500 as the qualifying score and likely headed for a turn-down.



Copyright© 2019 Realty Times®. All Rights Reserved

 

Miami Dade Seller Services, Selling Your Home | The Reznik Group
Miami Property Search
Search in Spanish
Search in French
Search in German
Search in Italian
Search in Portuguese
Search in Russian
Search in Chinese
Facebook Twitter Linkedin Active Rain Instagram
Search by Map Miami Dade Seller Services Visit Our Mobile Website Sunny Isles Beach Penthouses

Bookmark this Site Client Login | The Reznik Group
Updated: Monday, December 9, 2019

You Dont Need 20 Down and Seve...
You need to be well-established in your forever careerThere has been a lot of discu...

Are You Buying For The Right R...
In the push to buy, have you stopped to decide what is driving you into homeownership in th...

Co-Signing? Consider These Poi...
The first is realizing what happens if someone you co-signed for defaults on a loan. A lende...

The Power of SEO How to Grow Y...
What is SEO?When a user searches a keyword, Google presents them with a ranked list...

5 Designer Tips on How to Mix ...
Dont stress by following only a few tips, you will be able to easily shape and >Allow y...

Copyright ©2019 - Realty Times®
All Rights Reserved.

View All News
Ritz-Carlton Residences Condominium Construction Update September 2018
The Reznik Group is proud to feature the currently under construction Ritz-Carlton Residences...

Turnberry Ocean Club Construction Update - September 2018
The Reznik Group Miami Luxury Realtors is proud to feature the currently under construction...

View All Blog News