Wanted to help my friend in getting mortgage loan for $240k by adding my name as co applicant. My co
The key to financial power lies in your credit rating. If you plan to get a home loan, save money and get better credit starting now!
4. What makes you think your friend could get a refi in 6 months? What if his credit gets worse? I assume you have seen a copy of his credit report and credit score, right. At least say you did that.
5. You should make sure and disclose on the mortgage applicaiton that this not your primary residence, so when the loan defualts the lender won't try to charge you will fraud on the application. Probably would never happen, but again another risk if you lie on the app.
Hope this helps.
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Wanted to help my friend in getting mortgage loan for $240k by adding my name as co applicant. My concerns..?Never co sign for a friend because if you do, he will no longer be your friend. If he defaults on the loan, it will be on your credit file for 7 years. Is it worth that risk?
Wanted to help my friend in getting mortgage loan for $240k by adding my name as co applicant. My concerns..?You NEVER want to cosign on anything of this magnitude, especially if you want to purchase a home for yourself in the near future.
You MAY have a hard time securing a mortgage for a second home because they will look at your debt to income ratios and all that. The way you have to look at it is this....if your friend defaults (he may be more responsible now....we all deserve a second chance from financial mistakes but maybe he did not learn his lesson so be careful)...but if your friend defaults....and you have a mortgage for 250,000 as well.....can you afford the mortgage payments for TWO $250,000 homes? That is how the bank will look at it too. If you can not, and your friend defaults, you could end up losing one of your homes to Foreclosure then which would damage your credit report for a few years and affect your current accounts (universal default rate....credit cards can up your interest rates if you default on ANYTHING they can find out about) so if your friend defaults and you are not able to keep up on both mortgages you will face foreclosure, credit card interest rates skyrocketing, you will see your home owners and car insurances go up to lower FICO scores and them considering you a higher insurance risk and so on.
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