Thinking About Co-Signing?
Before you agree to help a friend or family member, talk to your mortgage loan officer. Even if you never make a payment, the loan could affect your ability to qualify for a mortgage.
Already Co-Signed a Loan?
Don’t assume it will automatically prevent you from buying or refinancing a home.
Depending on the loan program and your situation, the payment may be excluded from your debt-to-income ratio if you can document that the primary borrower has made the required payments from their own account for the required time period.
Every situation is different, which is why it’s important to discuss it with your loan officer early in the process.
The Bottom Line
Whether you’re thinking about co-signing or you’ve already co-signed a loan, don’t assume the outcome. A quick conversation before applying for a mortgage can help identify potential issues and determine the best path forward.