Getting a Mortgage is not easy as it used to be, mainly due to the mortgage qualification rules and the skyrocketing real estate price, a great job, a good income still won’t be enough to qualify.
That is where a Mortgage co-signer comes in handy. If an applicant has a poor credit score, with a co-signer it becomes much easier to apply for a mortgage and in some cases, they may get a slightly lower financing rate.
Co-signers will offer additional support when filling out the mortgage application, a co-signer with a better credit score and income can help the applicant with lower income and credit score. There are two different ways a co-signer can support your application
- A co-signer becomes a co-borrower, this includes the applicant's partner or spouse, a co-borrower adds support to the applicant's credit history and income and is considered equally responsible.
- Another scenario is when a co-signer becomes a guarantor, the guarantor backs up the applicant for loan and vouches that the applicant will pay it back on time, but not many lenders process application with guarantors, most of the lenders prefer the parties to share the ownership of the property.