Co-signer

Co-signer

A co-signer is an individual whose income, assets, and creditworthiness are considered to help you qualify for a mortgage. They are legally liable to repay the loan if you are unable to do so, but they do not have any ownership interest in the property.

Having a co-signer can offer several benefits as well as risks. If you have someone with a strong credit history co-signing the loan, it can enhance your chances of securing a mortgage with better interest rates. Additionally, making regular monthly payments on the loan can positively impact the co-signer’s credit report.

However, there are significant downsides to co-signing a loan, particularly the risk of default. If you cannot make your monthly payments, the co-signer becomes responsible for repaying the loan, which can create financial strain and potentially harm your relationship.

Both parties should approach the decision to co-sign carefully, ensuring clear expectations and open communication. It is crucial for both the borrower and the co-signer to have a strategy in place to minimize the risk of defaulting on the loan.

Mortgage Closing

The mortgage closing is the final step in buying a home. It’s when the property title transfers to you, and funds are exchanged with the seller.

Interest Rate

The interest rate on your loan is the percentage you pay to the lender for borrowing money. Mortgages can have either a fixed or adjustable interest rate.

FHA Handbook

FHA home loans have specific rules that lenders must ensure the loans are insured by the U.S. government. Rules compiled in a reference book called HUD 4000.1

Good Faith Estimate

Good Faith Estimate is a document that helps people buying a home giving them basic info about their home loan and an idea of the costs involved in getting it.

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