Co-signing for a Kansas City home loan is when another individual and yourself jointly apply for and carry a primary mortgage. This concept may sound simple, but getting a loan with someone can be quite complicated. Signing for a loan is a long-term, legally binding agreement with another person, the lending institution, and other organizations like the title or escrow company. That being said, there are risks and benefits to being a co-signer on a Kansas City home loan. Before co-signing for a loan, be sure to consider:

  • The strengths and weaknesses of your home loan partner
  • What kind of loan you are co-signing for
  • Your various options as a co-signer

Why Co-signers Are Important

Many people need a co-signer in order to get a mortgage. A co-signer is someone guarantees your promise to the lender to make payments on a property. Co-signing for a mortgage provides borrowers with additional options for buying or refinancing a Kansas City home loan.

Characteristics of a Good Home Loan Partner

If you are considering becoming a co-signer for a Kansas City home loan, make sure your future partner possesses the following traits:

These traits lessen the chance of your home loan partner defaulting on their loan, which cause serious consequences to your financial standing.

Co-signer Options

If you are married, you will most likely co-sign for the purchase of your spouse’s home. Parents and family members are often co-signers as well. It’s essential to sign a Kansas City home loan with someone you trust and who trusts you. Some people choose to write up a contract, specifying rights and responsibilities such as who will:

  • Occupy and take care of the property
  • Pay the bills

Thinking About Co-Signing for a Kansas City Home Loan?

Talk to a Cornerstone Loan Officer Today About Your Options