With the mortgage rules changing almost daily these days, it is becoming increasingly difficult to qualify for financing. As a result, many young and first-time buyers are turning to parents or other relatives to co-sign the mortgage in order to get that approval.
As a co-signer, you do have to be very careful. You are now on the mortgage, so if the true owner stops paying, you’re on the hook – and your credit will take a beating. Also, you are likely going to be on the house too, so that could affect your ability to qualify for additional loans for yourself, whether a new credit card or credit line or refinancing your own mortgage.
Ultimately, you’re the only one who can decide whether it makes sense to co-sign a mortgage, but you should definitely be getting legal advice before you sign everything to be sure that you really want to do it.
