Forgotten Your Password?

Need to Register?

Question Icon

How much does a co-signer affect my mortgage?

If my dad is willing to help co-sign my mortgage, do they use his credit profile, or mine when determining mortgage rates and eligability? by arthur_755_416 from Miami, Florida. Dec 22nd 2011 Reply


Brian Allen (ballen)
#43 ranked lender in Maryland - 191 contributions

Arthur, the lower score will be used for mortgage qualification so if your credit is fine you will be evaluated, your father may provide additional income to qualify. Certainly, you know the cosigner is responsible for the loan repayment if the borrower defaults on the payments. I can be reached at ballen@accessnational.com or 888-354-3299

Dec 22nd 2011
0
0
Stephen McWilliam (StephenMcWilliam)
#137 ranked lender in Florida - 45 contributions

The lowest middle credit score of all the borrowers will be utilized for pricing and underwriting. Additionally, the combined income and assets will be the basis for determining the debt to income ratios. Please feel free to contact me directly at 954-449-1767 or smcwillliam@FloridaStateMortgageGroup.com. Have a great Holiday....

Dec 22nd 2011
0
0
Don McCarty (donmccarty.pfa)
#34 ranked lender in North Carolina - 53 contributions

Sounds like this may be your first home. I've included some other information for you as well.Several Factors Affect Your Mortgage RateThe amount of your loan can increase your interest rate if the amount financed exceeds the conforming loan limits established by Fannie Mae and Freddie Mac. The conforming loan limit changes at the beginning of each year. Shorter loans, such as 20 year or 15 year note, can save you thousand of dollars in interest payments over the life of the loan, but your monthly payments will be higher. An adjustable rate mortgage may get you started with a lower interest rate than a fixed rate mortgage, but your payments could get higher when the interest rate changes. A larger down payment - greater than 20% - will give you the best possible rate. Down payments of 5% or less should expect to pay a higher rate as you are starting with less equity as collateral. If you've got the cash now and want to lower your payments, you can pay on your loan to lower your mortgage rate. It's a simple concept, really: In exchange for more money upfront, lenders are willing to lower the interest rate they charge, cutting the borrower's payments. Closing costs are fees paid by the lender, if you don't want to pay all of the closing costs, expect a higher rate which will pay the lender additional interest over the life of the loan. Credit quality and debt-to-income-ratio affect the terms of your loan through FICO Score. If you have good credit and your monthly income far surpasses your monthly debt obligations, you will get approved at a lower interest rate. However, if your monthly income barely covers your minimum debt obligations, even if you have a credit report, you will not receive the lowest available interest rate. Contact Don McCarty at American Finance Group so we can prequalify you. DonMcCarty.PFA@gmail.com

Dec 22nd 2011
0
0
Adam Webb (Adam.Webb)
#15 ranked lender in South Carolina - 19 contributions

They will use income, liabilities and credit scores for each of you to determine eligability. I hope this helps. feel free to contact me with any questions. Adam Webb, First Charleston Mortgage 1-800- 968-3987 or email at adam.webb@firstcharleston.com

Dec 23rd 2011
0
0
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

If you are looking at an FHA loan, your father can help a lot. As a non-occupant co-borrower, which is what a co-signer really is, he can add strength to your situation. However, if you have BAD credit, he won't be able to help you. Your combined income and debts will be used for underwriting. Depending on what your plans are, there are several different options available to you. My best advice is to contact a local Mortgage Banker/Broker, rather than one of the big banks. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. He/She will have access to loan products of many lenders, not just those of one bank, and can properly guide you. But more importantly, He/She is trained to take a look at the various different options available to you and guide you into the one that makes the best sense for your situation. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org.

Dec 23rd 2011
0
0
Subscribe to our news feed.