Will Co-Signing A Mortgage Impact My Credit?
August 30th, 2008 By Peter G. Miller
Question: We have co-signed a note but make no payments. How will this impact our ability to borrow?
Answer: In this situation a lender will want to understand your financial liability. One issue will concern whether or not the loan is secured. A second issue will concern your payments.
If you are making payments, those payments will be seen as a monthly cost and will reduce your ability to borrow.
If you are not making payments, that’s better. Many lenders will accept 12 original canceled checks showing full payment for the note by others as evidence you are not making monthly payments. If you are not seen as making monthly payments, then you will have more ability to qualify for financing.
Speak with loan officers for specifics.
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