Lets say I am applying for a mortgage and my income is pretty good, but my credit score is not all that great. If I have someone with great credit ( and ALOT of money) co-sign with me... will i get approved for a good mortgage amount and good rate?
2007-01-25 06:55:07 · 4 answers · asked by Anonymous in Business & Finance ➔ Credit
Yes it will help in most cases. Legally the bank would come after them if you had a problem making payments. So the back would give out as much as they think the co-signer could handle.
They would be on the hook just like you though, so they better trust you alot.
2007-01-25 06:57:26 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It is definitely helpful. If the co-signer can go full doc, which means showing tax returns for the past 2 years, then most banks can use their Fico score which will ensure you get the best rate.
If the lender uses your Fico score, but still approves you for the loan with the co-signer you will get a loan, but the interest-rate will be higher than desired.
I would try to clean up your credit asap just in case things fall through, and for good measure anyways.
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2007-01-25 15:35:26 · answer #2 · answered by Todd S 3 · 0⤊ 0⤋
It can really depend on how bad yours is. It's rarely the case that a non-occupant co-signor can offset your bad credit, but it can be done.
Your best bet will be an FHA loan. They're the best for co-signor type deals, and offer good fixed rates.
2007-01-25 15:07:37 · answer #3 · answered by Anonymous · 0⤊ 0⤋
That's quite possible.
2007-01-29 14:28:15 · answer #4 · answered by Kristy ♪♫♪ 3 · 0⤊ 0⤋