Should we have my parents co-sign on our home loan?

posted 3 years ago in Home
Post # 3
9412 posts
Buzzing Beekeeper

@mrshoneybee:  That’s very generous of your parents. I would never co-sign a loan for anyone, let alone a mortgage. That is a huge risk and I do not want to be liable for someone else’s debt. Quite honestly, if the bank won’t approve you, there must be a reason. I would work on building your credit scores and do it on your own.

It will not feel like your place if you are still dependent on your folks, and you never know – people change their minds and they can throw it back in your faces, try to control your spending, think they can come over whenever, etc. Maybe your parents aren’t like that, but mixing money with family is dangerous in my books.

Post # 4
10453 posts
Sugar Beekeeper
  • Wedding: January 2011

@mrshoneybee:  What’s the minimum length of credit history that you need?

Why do you only have a year?

Post # 5
2627 posts
Sugar bee
  • Wedding: November 1999

Its best never to do business with family. And by them co-signing you are entering into an agreement with them and the bank, a business agreement.

If something were to happen, then your parents are responsible for the debt which could ruin them. I would not want to risk my parents welfare even if its a remote case of something bad happening.  I suppose you could always refinance later to take them off, but then you are “wasting” the low interest rate you are rushing to secure right now since its likely it wont be as low. 

Its very generous of your parents, but money causes problems despite peoples best efforts. 

Post # 9
8388 posts
Bumble Beekeeper
  • Wedding: April 2013

@MrsPanda99:  +1, co-signing a mortgage, of all things, is a huge risk.

Post # 10
3570 posts
Sugar bee
  • Wedding: September 2011

@mrshoneybee:  closing a credit card does not remove your credit history.  It will ding your score a tad when you close it, but it remains on your credit report. 

I would not have a parent co-sign on a mortgage.  

Post # 12
2627 posts
Sugar bee
  • Wedding: November 1999

@mrshoneybee:  Have you pulled and seen your own credit report? That is not true what you just said.

Post # 13
832 posts
Busy bee
  • Wedding: December 2012

My now husband and I bought a home before we got married we were both 23. I dont work and my then fiance had only been with his company for a year at the time. He had good credit as far as credit cards and his car payments, but as we were jsut starting out we didnt have that much credit to go by really. We were approved for our mortgage though. If you cant both get approved together look into just one of you. That will make a difference as well. I would highy suggest not letting your parents cosign for yorur mortage! Instead go to different mortgage companies…often times builders willl have their own mortgage companies associated with them and they are often more flexible on how much credit you have to have and will look at how much you make and how much debt you have instead. Good luck!

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