Brian Sanchez · The No-Pressure, Dedicated Local Mortgage Lender
Call/Text me at (706) 973-7933
Your debt-to-income ratio is one of the most critical factors in establishing your eligibility for a home loan. Lenders want to see that the total debt payments you will be responsible for each month, including principal and interest on any mortgage loan, do not exceed a certain percent of your gross income (before taxes).
If you cosign on a car loan for somebody else, the lender will include the payment as part of your monthly debt payments when assessing your eligibility. Depending on how much more this amount is relative to your monthly income, it could end up disqualifying you from getting a home loan. So make sure to speak to your lender before agreeing to do so.
When you cosign for somebody else, if they miss a payment it affects your credit just as if it were your loan and you missed the payment. Many people who cosign for somebody else don’t realize this. You need to be careful who you choose to cosign for because it could seriously impact your financial future.
If you've already cosigned for somebody else? Don't panic just yet. First, speak to your lender to see if this even affects your eligibility. If it does, there are still some things you might be able to do:
Credit repair is not something that can be done overnight. However, if you work with a good credit repair specialist who can help you with fixing your bad credit score, you might be able to expedite the process. Contact Brian the Lender to see if you qualify for his FREE credit repair program. 706-973-7933
No. It's just important to understand the implications of what you're getting yourself into before agreeing to do so. For many people, cosigning on a car loan is actually an easy way for them to help somebody they care about get their financial life together and establish creditworthiness. On the other hand, it can also negatively impact yours. Make sure to speak with your lender before agreeing to cosign for someone else (even if you don't plan on purchasing a home in the immediate future), and be sure that this individual is someone you can trust to make their payment on time every month.