Will having a cosigner help?

Question

We are getting ready to buy our 1st home in the spring, we have had some credit problems in the past but are doing better, but we still would probably get a high interest rate. Would having a cosigner with excellent credit help us bring down the interest rate?

Answer 1

yes, it would help. If you do this, form some kind of partnership and make provisions for death (what happens if one of you dies), disability (what happens if one of you becomes disabled and no longer can make the mortgage payments), divorce (one of you becomes divorced) and departure (one of you no longer wants to be a part of this deal). Then have the partnership buy the house.

Try cleaning up your credit first by running your own credit and disputing any *false* information.

If you're in Southern California, I can help with all aspects of your home purchase, from helping you clean your credit to helping you buy a house that you can afford.

Regards

Answer 2

I don't know if it will bring down the interest rate, but it make it possible to qualify for a home loan. If your credit is truly bad, you might need a cosigner just to qualify for a loan. The best thing to do would be to check with a mortgage officer. It usually doesn't cost anything for them to do a credit check, have you fill out an application, and get pre approved. This does not obligate you to take the loan; it just lets you know that, with your credit, and with that specific mortgage company, you can get a mortgage for x amount. The pre approval letter also lets potential sellers know that you are really interested, and not just looking. Remember, pre approval is different from pre qualification. Pre qualification doesn't mean anything; usually they don't even do a credit check. You want to get pre approved, where they do a credit check. I've had good luck with Wells Fargo and American Home Mortgage,so far. American Home Mortgage approved me when I really didn't think I could get approved.
If you get a cosigner, the cosigner has to be someone that really, really trusts you, because if you fail to make a payment (sometimes even one missed payment) the loan reverts back to the cosigner, and he or she is completely responsible for paying it back.
Hope this helps!

Answer 3

A co signer with an excellent credit rating would help. But who in the world would co-sign a mortgage with you? You're asking an awful lot of that person as that person would be responsible for the debt when or if you failed to pay.'

Answer 4

It all depends on the situation, but sure it would help alot!

But still try to do the transaction on your own.

Depending on what credit problems you have had there still may be a possibility.

Never say NEVER!

Answer 5

Not any more than a larger down payment...

rather than ascertain a co-signer, I would try instead to raise a more significant down payment to lower your monthly mortgage and interest rate.

Answer 6

something is fishy. both your daughter needs a co-signer and isn't any longer telling you why ... or ... the college is violating the regulation - in case you pay money (or equivalent) up the front, there is easily no credit examine accepted through regulation ... or ... there is also the prospect that there's a choose for "credit" contained in the bookshop, dorms, or something like that.

Answer 7

Yes, it will help... but finding someone trust worthy and willing to take on the responsibility of your payments should you default, may be difficult.

Answer 8

This article gives you tips on negotiation:
http://biz.yahoo.com/brn/060909/19463.html

Answer 9

Not necessarily - if you are the primary they look at your rating.