What is a mortgage co-signer?
If an interested borrower has a weak credit score or their income does not support the requested mortgage amount they’ve applied for, they can request for someone (with collateral and who is willing) to co-sign for them. The co-signer will act as an additional borrower on the mortgage application and will stand beside the borrower to strengthen the mortgage request. It allows lenders to feel more confident about approving a loan since two people are now responsible for repaying the loan.
Ideally, the borrower repays the loan. The monthly payments should be made as required and the co-signer is usually unaffected by the transaction. But if the borrower misses payments, the credit score of the co-signer will be affected. Furthermore, if the borrower fails to pay, then the lender will request for the co-signer to pay for the full-unpaid balance.
Please refer to “How do i qualify for a mortgage” to see if you are qualified for a mortgage or if you need a mortgage co-signer.