About This Video
Having a parent or family member co-sign can be a game-changer, but it’s not a magic fix for every situation.
Here is what you need to know before putting them on your loan:
1️⃣ When a co-signer HELPS: If your debt-to-income (DTI) ratio is too high, adding a co-signer with strong income, low debt, and good credit can bring your overall ratio down and get you approved.
2️⃣ When a co-signer HURTS: If your co-signer carries heavy credit card debt, high car payments, or a weak credit score, they can actually lower your approval chances or raise your interest rate.
3️⃣ The Risk for Them: Once you close, that mortgage is on their credit report too. If you miss a payment, their credit takes a hit. It can also affect their ability to buy a car or home in the future.
4️⃣ How to remove them later: To take a co-signer off the mortgage down the road, you usually have to refinance and qualify completely on your own.
💡 Every loan program handles co-signers differently.
📲 Want to see if adding a co-signer makes sense for your scenario? Contact Lock It Mortgage team today, we'll help you review your scenario together and build the right strategy for you!
Disclaimer: This is not a commitment to lend. All loans are subject to borrower qualification, property eligibility, and underwriting approval. Rates and terms are subject to change without notice. Additional terms & conditions apply.
